S&P 500 Rallies 10% YTD, Nasdaq Surges 18% as U.S. Economy Accelerates to 2.1% GDP Growth in Q1 2026

As of mid-2026, the S&P 500 is up 10% year-to-date and the Nasdaq has rallied 18% despite geopolitical concerns, supported by resilient economic fundamentals. U.S. GDP accelerated to 2.1% on an annualized basis in the first quarter of 2026, up from 0.5% in Q4 2025, with GDPNow estimates pointing to around 1.2% growth in Q2. The University of Michigan's final June consumer sentiment index rose to 49.5 from a record low of 44.8 in May, while the unemployment rate stands at 4.3% with 172,000 nonfarm jobs added last month. Corporate earnings remain strong, with 85% of S&P 500 companies beating analyst estimates in Q1—the highest share since Q2 2021.
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