The second quarter experienced one of the sharpest quarterly percentage gains in market history. The S&P 500 posted its best percentage quarterly performance since 1998 and the Nasdaq Composite had its best quarter since 1999, as the economy began to reopen after the coronavirus lockdown. The Russell 2500 Growth reported its second-best quarter ever (the fourth quarter of 1999 was the best).
Energy transition has been a growing topic of discussion among investors and policymakers, driven by technological innovations to improve the economics of renewable energy, the increasing role of environmental, social, and governance (ESG) investing, and a greater sense of urgency surrounding climate change.
It seems nearly impossible that in a matter of months (weeks?) the financial markets experienced a round trip for the ages. While much remains unknown about the pandemic’s lasting impact – both from a health and economic perspective– it appears that financial markets are willing to discount most of the effects as short-term in nature.