In the second quarter, the S&P 500® Index posted its strongest start for the first half of an election year since 1976, reaching a 15.29% gain despite stubborn inflation readings and a bumpy start for U.S. equities. Strong first quarter earnings from a select group of mega-cap companies bolstered market sentiment, propelling the S&P 500 to record highs with a 4.28% second quarter return. While President Biden will likely remain the Democratic Party nominee, the upcoming election should have relatively little impact on investment returns and market sentiment. Notably, both consumer spending and the labor market have started to lose momentum, underscoring a pivotal moment for the Federal Reserve. Given the unpredictability of short-term market movements, we share how we believe maintaining a long-term perspective will help investors mitigate risks and capitalize on opportunities over time.
