Nasdaq Posts Best Quarter in 6 Years as AI Backlogs Grow

The NASDAQ Composite surged 21.4% in Q2 2026, marking its strongest quarterly performance in six years. The S&P 500 matched the rally, powered by AI and data center infrastructure demand that has pushed order backlogs to record levels.

The rally comes alongside improving employment trends, while analysts project sustained earnings growth into the back half of 2026. The Q2 performance builds on expectations for Q3 GDP growth of 5-6%, driven by three catalysts: AI-driven productivity gains, an improving trade balance from energy exports, and resilient consumer spending.

The housing market remains a laggard in the broader recovery, with only modest improvement recorded despite the broader economic acceleration. The disconnect between tech-led equity strength and housing sector weakness underscores the uneven nature of the current expansion.