Q2 Market Recap (2023)
Today marked the end of Quarter 2 (Q2) 2023, and markets ended the quarter with a strong day in the green. For the second quarter, the Dow Jones gained 3.40%, the Nasdaq rose 12.81%, and the S&P500 increased 8.29%. This article will take a look into the major economic events of the second quarter, performance metrics, and other important topics.
Let’s first take a look at recent economic data releases in Q2. GDP data for Q1 which was released on June 29th, showed the US economy grew 2.0%. Despite persistent inflation, the economy has grown for the second straight quarter.
Inflation continued to trend downward to 4.0% as of May’s latest report. Inflation rose 0.1% in May; June’s data is set to be released on July 12, 2023, at 8:30 am EST and can be found here. The Fed has opted to pause rate hikes during their last meeting, but there were indications of probable hikes in the future. At a minimum, there is an expectation that rates to remain high until inflation can be tamed. The current rate range is 5.00–5.25%.
Today, the Personal Consumption Expenditures (PCE) report was released. A change of 3.8% from one year ago is noted, The full report is available here.
The tech sector continued its run, with Nvidia leading the way with a 52.29% quarterly gain. AI demand and development continues to be a key factor in growth forecasts. Apple (+17.63% in Q2) continues to dominate the market as it became the first company to hit a 3 trillion market cap today.
The travel industry gained late in the quarter following positive news. Delta (DAL) increased its forecast for the summer, citing high prices along with an increase in demand. Royal Caribbean Cruises (RCL) announced new ship deployment, along with increased demand. Other stocks in the sector also had notable q2 growth:
Cryptocurrencies gained steadily this quarter. Bitcoin gained 6.64% and Ethereum rose 5.83%. Following early declines in the quarter, Bitcoin and the overall crypto market recovered following news that major brokerages were applying for Bitcoin ETFs. Decrypt wrote an article that outlines the major companies to apply for ETFs thus far.
As we look forward to Q3, inflation and the state of the economy remain a central focus of markets.
- The banking sector was reported to be back in good health following multiple collapses earlier this year.
- The Fed is set to release its digital payment engine “FedNow” in July. Early adopter organizations are currently testing and certifying the service, which indicates availability to the public is pending.
All information in this article is for educational purposes only and is not to be considered financial advice. Do your own research and consult a financial advisor for advice.
Financial data provided by Google Finance.
