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S&P 500 ends Q2 2026 strong but faces resistance amid rising US dollar and Fed rate concerns

Market News
01 Jul 2026
Seeking Alpha
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Bearish
pluang ai news

The S&P 500 closed Q2 2026 with a strong two-day rally, marking its best quarterly performance since Q2 2020. The rebound was driven by easing geopolitical tensions, institutional buying, and fund managers' window dressing, particularly in AI, semiconductor, and mega-cap tech stocks. However, the US Dollar Index hit a 13-month high post-June FOMC meeting, posing a headwind for equities. Investors now watch Fed Chair Kevin Warsh and upcoming US labor data closely, as hawkish signals or strong payrolls could boost the dollar further and risk a near-term pullback in the S&P 500.

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