Deutsche Bank’s Jim Reid and team note that the S&P 500 ended Q2 strongly, with the index up 0.79% on the day and delivering its best quarter since Q2 2020. Gains were driven by large-cap tech, especially the Mag 7 and the Philly semiconductor index, while the equal-weighted S&P 500 and Russell 2000 lagged.

Tech strength narrows S&P 500 breadth

"Risk assets largely finished Q2 on a strong footing yesterday, with the S&P 500 (+0.79%) gaining for a second consecutive day."

"The biggest factor was the recovery in tech stocks, with the Mag 7 (+1.30%) up for a third consecutive day, whilst the Philly semiconductor index (+3.92%) posted another large gain."

"The rally was somewhat narrow with a majority of S&P 500 constituents lower on the day and just 8 of the 25 industry groups gaining."

"This left the equal-weighted S&P 500 -0.12% lower, while the small cap Russell 2000 underperformed (+0.46%) its large cap peers."

"The S&P 500 saw its best quarter since the post-pandemic rebound in Q2 2020, with a +15.2% gain in total return terms."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)