Quarterly Market Update / Summer 2026 

Second quarter returns were positive for equities with the Russell 2000 small cap index up +21.49% and the S&P 500 up +15.20%. Internationally, the MSCI ACWI Ex-USA grew 14.69%. Sector performance dispersion was wide with technology, the only sector to outperform the broad index, up more than 43% with help from AI-related companies. The biggest detractor, energy stocks, dropped more than -12%, and the other sectors had returns between -3% and +9% except for Industrials, up +14.81%, also benefiting from AI infrastructure buildout.

Within fixed income, the Bloomberg US Aggregate Bond Index was up 0.67% and the global version of the benchmark rose 0.87%. The 10-year US Treasury yield rose from 4.30% to 4.44%, while 2-year Treasuries increased from 3.79% to 4.14%, reflecting lower bond prices. Gold and silver each fell more than -14%.

Now comes Q3. Historically, August and September have been two of the weaker months for US investing, and a mid-term election year can create headwinds too. Our commitment remains, we will not deviate from our strategy due to short-term fluctuations, and we will rebalance opportunistically if the opportunity arises to stay aligned with client goals.

Until next quarter, have a great summer!

Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth.