Investor sentiment has improved substantially year to date as cooling inflation, a resilient labor market, and stronger-than-expected economic growth have mitigated recession fears to some degree. By no means has the possibility of a recession disappeared, but all three major U.S. stock indexes still increased in value in the first half of 2023.

The blue chip Dow Jones Industrial Average jumped 3.8%, and the broad-based S 500 increased 15.9%. But the technology-centric Nasdaq Composite (NASDAQINDEX: ^IXIC) stole the spotlight by soaring 31.7%. That was the index's best first half since 1983 and its third best since its inception in 1971.

Here's what history says will happen next.

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Source Fool.com