It is troublesome to forged these previous three months in a optimistic mild given the fallout of the COVID-19 pandemic, however, for the stock market, Q2 was in truth 1 / 4 to recollect.A day of beneficial properties for tech- and tech-adjacent sectors led the foremost blue-chip indices to larger floor, capping their finest quarterly performances in years.Tuesday’s beneficial properties got here on little to crow about, thoughts you.Commercial – Article continues belowJoint testimony from Treasury Secretary Steve Mnuchin and Federal Reserve Chair Jerome Powell painted a blended image of America’s financial recuperation. And Dr. Anthony Fauci, the nation’s main infectious-diseases professional, mentioned America’s day by day coronavirus caseload may hit 100,000 if present tendencies proceed, warning that America is not “in whole management” of the pandemic.The tech-heavy Nasdaq, led by the likes of Amazon.com (AMZN, +2.9%) and Nvidia (NVDA, +3.2%), nonetheless pushed 1.9% larger to 10,058, capping a 30.6% three-month achieve that marked its best quarter since 2001.The Dow, which closed with a 0.9% achieve to 25,812, loved its finest quarter since 1987 with a 17.8% rally. And the S&P 500, up 1.5% to three,100, posted a 20.0% quarterly return for its finest Q2 for the reason that index’s inception in 1957. The small-cap Russell 2000 climbed 1.4% to 1,441, its finest quarter since 1991.What’s in Retailer for Stocks in Q3?Mercifully, traders will get a time off early within the quarter. The stock and bond markets will probably be closed Friday in statement of Independence Day, as July Four falls on a Saturday this yr.Commercial – Article continues belowMore broadly talking, we enter Q3 in a a lot totally different place than we entered Q2 … however in a nonetheless related situation. Whereas stocks are in the midst of a heater, versus within the midst of the quickest bear-market decline in U.S. historical past, the American financial horizon seems each bit as foggy now because it did three months in the past.How rapidly will jobs return? Will Congress go one other spherical of stimulus? How will the evolving presidential race weigh on or prop up the stock market? Will we take the higher hand in opposition to COVID-19? These are only a few of the questions that, when answered, may take stocks for one more wild experience between now and the top of September.Wells Fargo Funding Institute analysts are considerably optimistic, writing that “We count on a reasonable restoration following a robust, third-quarter begin” in a current observe to purchasers. Nonetheless, “whereas the U.S. economic system seems poised to get well, the timing stays unclear, and the trail probably will probably be stuffed with twists and turns.”Some traders would possibly do effectively simply to stuff their cash into strong long-term holdings and wait it out. For some, meaning extremely rated blue-chip stocks and diversified funds with wallet-friendly charges.For others with speculative cash to spare, nonetheless, it is an opportunity to attempt to seize lots of the wild swings which have peppered the stock market in 2020. Progress stocks on the whole could be sufficient to fulfill these whims, however some want to delve into Wall Street’s figurative “discount bin.”Whereas low-cost stocks with single-digit costs are a supply of sky-high threat, these alternatives can nonetheless add alpha when traded in small quantities as a part of a diversified technique with sturdy core investments. These 5 names particularly have their blemishes, however every has the type of potential that pulls the stock market’s thrill seekers.Kyle Woodley was lengthy AMZN as of this writing.