US equities continued their bull run in June 2026, with major indices posting their biggest quarterly gains since 2020. According to reports from ET Now, the Dow Jones Industrial Average rose 136 points, or 0.3%, to close at 52,319.20. The S&P 500 gained 0.8% to settle at 7,499.36, while the Nasdaq Composite surged more than 1.5% to finish at 26,213.72. All three major indices are trading close to their respective 52-week highs, underscoring the strength of the ongoing rally in US equities.
Market strategist Santosh Rao identified strong corporate earnings as the primary driver supporting the current rally. As reported by ET Now, Rao stated that "one good thing in the market and what's holding up the whole thing is strong earnings growth." The earnings growth is expected to remain above 20% in the second quarter and continue at similar levels in the third quarter, with full-year earnings-per-share (EPS) growth also projected to exceed 20%. According to Rao, "Overall, we're going to end the year with +20% EPS growth."
US employment data released in May 2026 showed nonfarm payrolls increased by 172,000, while the unemployment rate held steady at 4.3%. As reported by ET Now, job openings remain elevated and layoffs were limited, indicating a healthy labour market despite signs of gradual cooling. Strong employment data supports equities by underpinning consumer spending, improving the outlook for corporate earnings and strengthening investor confidence in the broader economy.
Despite ongoing market concerns, Rao believes inflation is not currently posing a major risk to the equity market. According to ET Now reports, Rao explained that "Inflation is proving to be very sticky, and that's going to stay there... It's not jumping up, but it's not coming down either. It's kind of sticking there, so it's manageable (for US equities)." This assessment suggests that while inflation remains a consideration for investors, current levels are not expected to significantly impact the ongoing market rally.
