Stock Funds Rallied 17.1% in Q2 as Rotation, AI Volatility Spun Investors Around
- Stock funds surged 17.1% in Q2 2026 — one of the strongest quarters in years — but the path was turbulent, marked by a sharp tech wobble, rotation into industrials/financials, and a rebound, per WSJ's quarter-in-review.
- The quarter's narrative: weak June jobs (57K) revived rate-cut hopes, small caps (Russell 2000) posted their best H1 since 1991, and 'SaaS-pocalypse' software-loan concerns briefly rattled the AI trade.
- https://www.wsj.com/finance/investing/stocks-q2-2026-look-back-4b7f8c7d