Our Take on the Second Quarter
Stocks eked out gains amid market volatility, Fed-watching, and steep valuations.
U.S. stocks ended the quarter just a bit higher than where they began, but they didn't take a smooth path getting there. The broad-based Morningstar US Market Index finished the second quarter up 2.6%. The index is up 2.5% over the trailing one-year period and has now returned an annualized 11.7% over the past five years.
Although the Brexit vote led to two days of steep losses toward the end of the quarter, the market recovered nearly all of its losses with three days of strong gains. As of June 30, the Dow Jones Industrial Average was trading less than 400 points away from its all-time high of 18,312, reached in May 2015. Our analysts find the average stock in our coverage to be trading close to fair value.
Karen Wallace does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.