Welcome to our exchanges at Goldman Sachs markets update for Friday, July 10th.

Each week we check in with a leader across the firm to get a quick take on what's going on in markets. I'm

Jake Stewart Global Head of Corporate Communications here at the firm and

today's guest a repeat guest is Tony Pascorello who's back on from the Global

Markets Division. Tony sent out a note to institutional clients

last week that sort of recap the second quarter in markets

and we'll be talking about that today

and what to expect from the next quarter.

Tony, welcome back to the program.

Thanks, Jake, good to be with you.

Why don't you start by summarizing sort of the second quarter

that just wrapped up and one of the key things

to note about the big rally?

Sure, so Q2 was a spectacular quarter for the stock market.

Now we should probably preface this by saying Q1 was obviously dreadful.

In fact, it was the worst Q1 in modern history.

And so coming off that lower base, S&P rallied.

Call it 21% in the second quarter, which is a 99th percentile return.

And that was the single best quarter since the fourth quarter of 1998.

Beneath the surface of the index return, the best performers were essentially the higher

beta and more cyclical laggards of Q1, autos, retail, energy stocks.

And at the same time, that really didn't come at the expense of the more growthy or defensive

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