Wall Street wrapped up its best quarterly performance in decades with the S&P 500 logging in the best quarter since 1998. The benchmark jumped nearly 20% in the second quarter. The strong rally was driven by a combination of unprecedented levels of fiscal and monetary stimulus, hopes of a coronavirus vaccine and easing of lockdown measures.
The quarterly performance marks an impressive comeback for the stocks from the worst first quarter since the 2008 financial crisis due to the coronavirus pandemic, which had halted economic activities and resulted in millions of people losing their jobs (read: Top & Flop Zones of First-Half 2020 and Their ETFs).
The slew of recent data indicates that economic activity has started to pick up and economic damage from the coronavirus pandemic has been less severe than anticipated. However, the second wave of coronavirus infection and U.S.-China tensions continued to weigh on the stocks lately.