US Stocks Enter Second Half Near Records as Rally Broadens

US stocks entered the second half of 2026 trading close to record highs, capping a strong run despite bouts of volatility tied to geopolitics and trade. Since the November 2024 election, the S&P 500's total return has climbed roughly 30%, according to market strategists, as investors looked past conflict headlines and tariff uncertainty to focus on corporate earnings and steady consumer demand. Notably, the advance has broadened beyond the largest technology companies: smaller-company stocks have risen sharply from their 2025 lows, a signal of improving confidence across more corners of the market. Underlying support has come from resilient household spending, which rose more than 6% in May from a year earlier, positive wage growth and tax relief measures that have boosted disposable income. Analysts caution that valuations remain elevated relative to earnings, leaving less room for disappointment, and that sustained profit growth is essential to justify current prices. The path ahead is likely to hinge on inflation, Federal Reserve policy, energy prices and the strength of upcoming earnings.