What drove the market's strong performance in Q2 2026?

The strong performance is attributed to demand for cloud computing and AI, as well as improving tech company earnings.

Are these stocks overvalued currently?

The report does not specify valuations but indicates analysts see room for growth despite the strong performance.

Markets' Best Quarter Since 2020: 3 Stocks Still Have Room to Run

Markets just had their strongest quarter since 2020, but certain tech stocks like Microsoft and Alphabet still have significant upside potential according to analysts.

July 3, 2026

2 min read

Source: 24/7 Wall St.

Markets delivered their best quarterly performance since 2020, according to a report by 24/7 Wall St. Despite prevailing sour sentiment in many headlines, pockets of tech have taken over growth leadership, keeping the market hovering near highs.

Details

The report did not specify exact figures but highlighted that major tech stocks such as Microsoft (MSFT) and Alphabet (GOOGL, GOOG) were among the top performers. The strength is attributed to robust demand for cloud computing and AI services, as well as improving corporate earnings.

Context

This strong performance comes after a period of high volatility due to inflation fears and interest rate hikes. With economic expectations stabilizing, investors have returned to tech stocks with solid fundamentals.

What This Means for Investors

Although the market has rallied, analysts believe that stocks like Microsoft and Alphabet still have room to run based on future growth prospects. However, investors are advised to monitor valuations and potential risks before making decisions.

Frequently Asked Questions

Microsoft (MSFT) and Alphabet (GOOGL, GOOG) are among the stocks that analysts believe still have upside potential.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.