S&P 500 Best Quarter Since 2019 Driven by AI Earnings
US stocks posted their strongest quarterly gain since Q4 2019 as artificial intelligence earnings beats dominated market narrative.
US equities posted their strongest quarterly performance since 2019, with the S&P 500 gaining 11.2% as AI-related earnings dominated. Technology led with 19.3% gains. Microsoft, Nvidia, and Alphabet all reported AI-related revenue growth substantially ahead of consensus. Market breadth improved notably with all 11 S&P 500 sectors posting positive quarterly returns. The index now trades at 22.1 times forward earnings above its 16x historical average. Strong momentum is balanced against elevated valuations and AI monetisation timeline uncertainty heading into the next quarter.
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