Stocks posted a mixed but mostly positive month in June, with most major U.S. indices finishing the first half of 2026 near record highs as investor confidence continued to improve. Markets benefited from easing geopolitical tensions in the Middle East, a sharp decline in oil prices from their first-quarter peaks, and continued evidence that the U.S. economy remained resilient despite higher interest rates. While investors continued to debate the Federal Reserve’s next policy move amid still-elevated inflation, stronger-than-expected labor market data, resilient consumer spending, and improving manufacturing activity reinforced expectations that the economic expansion would continue. As recession fears subsided, investors increasingly shifted their focus from macroeconomic risks back to corporate fundamentals and long-term earnings growth.