S&P 500 and Nasdaq Close Out Stellar Quarter with Fresh Record Highs

U.S. equities ended the second quarter on a strong note, with both the S&P 500 and Nasdaq Composite setting new all-time highs on Monday, extending Friday’s record-breaking performance. Despite some early hesitation, momentum picked up sharply in the afternoon, thanks to a surge in Apple shares that helped push the S&P 500 above the 6,200 level for the first time ever.

Apple (AAPL) jumped 2.03% after Bloomberg reported that the company may integrate third-party artificial intelligence tools into a revamped version of Siri. The stock had been trading just below $200 before the news, but rallied to an intraday high of $207.39, contributing significant market cap weight to the broader index gains.

The late-session rally capped a remarkable quarter. The S&P 500 gained 10.6%, while the Nasdaq Composite soared 17.8%. From their April 7 lows, the indices are now up 28% and 38%, respectively—highlighting the strength of this bull leg.

Before Apple stole the spotlight, markets had been buoyed by several political developments viewed favorably by investors. Over the weekend, the Senate advanced the long-debated “One Big, Beautiful Bill” through a procedural vote, setting up a full vote either late tonight or early Tuesday. The legislation includes key provisions such as:

• Permanent extension of the 2017 tax cuts
• New Medicaid work requirements starting December 2026
• A phased reduction of solar and wind tax credits
• An increase in the SALT deduction cap to $40,000 for those earning under $500,000
• A $5 trillion increase to the debt ceiling

Though the CBO estimates the bill would add $3.3 trillion to the deficit over the next decade, the Treasury market reacted calmly, with long-dated yields falling in a modest rally. The 2-year yield dropped 2 basis points to 3.72%, while the 10-year yield fell 6 basis points to 4.23%, suggesting bond investors were not spooked by the projected fiscal impact.

Elsewhere, news of Canada stepping back from its digital services tax sparked speculation that trade negotiations between Ottawa and Washington could resume. Meanwhile, hopes of additional trade deals—including one with the EU—added to the optimistic tone.

Markets also welcomed news that all major U.S. banks passed the Federal Reserve’s stress test, which was released after Friday’s close. The result clears the path for banks to announce dividend hikes and buybacks. Goldman Sachs (GS) led financials higher, rising 2.45% to a new all-time high and helping the financial sector close the day up 0.9%.

The only sector to outperform financials was information technology (+1.0%), driven by Apple’s strength and renewed enthusiasm for AI, further supported by bullish commentary from Oracle (ORCL +4.0%) about its cloud business. For the quarter, the tech sector logged an impressive 23.5% gain.

Most sectors finished the day in the green, with only consumer discretionary (-0.9%) and energy (-0.7%) ending in negative territory.

It was a somewhat lackluster session for our U.S. portfolio, FTinvest 11, which posted a mild decline on Monday. The index fell 0.32%, closing at 765.92, as a mix of sector-specific softness and broader market hesitation weighed on performance.

While the pullback was modest, it reflects a cautious tone in the markets as investors await fresh catalysts in the days ahead. The portfolio remains well-positioned, but near-term direction will likely depend on macroeconomic signals and sector rotation trends.