July Pullback Hits S&P 500 First-Half Winners at 7,510

The S&P 500 closed the first half of 2026 at 7,483 after a 9.6% gain, with valuations improving as forward earnings rose faster than prices. Strong historical patterns and 24% projected 2026 earnings growth fueled bullish second-half forecasts through early July. However, sector rotation has triggered a pullback, with nearly all 22 stocks that doubled in H1 declining in July as investors lock in profits and shift toward cyclicals and small-caps. The index edged to 7,510 amid this consolidation while broader support from earnings remains intact.