US stock indexes ended their best quarter since 2020 on Tuesday, with strong corporate earnings and solid economic indicators—rising consumer confidence and job openings—offsetting geopolitical risks.
Chip stocks led gains thanks to an AI-driven global memory shortage, and investors signaled that earnings matter more than most other factors, except for interest rates.
What happened
US stock indexes closed out their best quarter since 2020 on Tuesday, driven by strong corporate earnings and upbeat economic data. Chip stocks surged particularly due to a global memory shortage stemming from the AI boom, while consumer confidence rose and job openings ticked up.
Why it matters
One investor noted that earnings have proven more influential than most other factors this year, except possibly interest rates. The rally has held steady despite deep selloffs, geopolitical tensions like the Iran war, and other external shocks—suggesting markets are focusing on fundamental business performance over headline risks.
What to watch
The market's focus on earnings and macroeconomic health (labor market stability, consumer sentiment) may continue to shape investment decisions in coming periods. A strategist described the market as "the ultimate grinder," pointing to its resilience through various obstacles.
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