S&P 500 Surges 15.2% to Record Highs as Iran De-escalation Revives Hormuz Oil Flows
Updated
Updated · Rochester Business Journal · Aug 6
S&P 500 Surges 15.2% to Record Highs as Iran De-escalation Revives Hormuz Oil Flows
3 articles · Updated · Rochester Business Journal · Aug 6
Summary
A 15.2% second-quarter jump sent the S&P 500 to fresh all-time highs as investors bet tensions with Iran would ease and oil shipments through the Strait of Hormuz would resume.
That rally came despite a less supportive Fed backdrop: first-quarter GDP grew 2.1%, second-quarter growth is seen at 1.6%, and markets still expect 50 basis points of rate cuts through the rest of 2026.
Information Technology led with gains above 30%, Industrials ranked second, and small caps outperformed large caps as investors rotated toward companies building AI infrastructure rather than consumer-facing winners.
Energy and Utilities were the only S&P sectors to fall, tracking collapsing oil prices, while 10-year Treasury yields ended the quarter slightly higher even after retreating as crude eased.
The report says AI-related spending contributed 1.5 percentage points of first-quarter growth and could again be a main driver, but warns geopolitics, inflation and weak small-business investment still cloud the outlook.