Equity Markets: Sharp Second Quarter Rebound Instills Strong Sense of Déjà Vu

Global equity markets staged a remarkable turnaround in the second quarter, more than reversing the 9% S&P 500 pullback that had occurred from late January to late March. On top of another bout of investor hesitation about the AI trade, war in Iran had sent energy costs higher, soured consumer sentiment, and prompted the Federal Reserve to worry about renewed inflationary pressures.