As June 2026 came to a close, the S&P 500 and Nasdaq, two prominent American stock exchanges, also finished things on a high by registering their biggest quarterly gains since 2020 as investors remained upbeat about economic and earnings growth despite the fallouts of the Iran war and resultant geopolitical volatilities in the Middle East region. The Dow, on the other hand, also witnessed its biggest quarterly jump since 2022.
The Dow Jones Industrial Average rose 136.46 points, or 0.26%, to 52,319.20. The S&P 500 gained 58.93 points, or 0.79%, to 7,499.36, and the Nasdaq Composite gained 393.58 points, or 1.52%, to 26,213.72. For the quarter, the Dow was up about 13%, the S&P 500 gained 14.9%, and the Nasdaq rose 21.4%.
“On the Nasdaq, 2,651 stocks rose and 2,318 fell as advancing issues outnumbered decliners by a 1.14-to-1 ratio. The S&P 500 posted no new 52-week highs and no new lows while the Nasdaq Composite recorded no new highs and no new lows,” reported Reuters.
The indexes ended higher for the day as well, with the Dow registering a record closing high for the second straight day. Technology led investor and stock gains among S&P 500 sectors, with an index of semiconductor stocks finishing 3.9% higher on the day. The recovery in tech stocks will bring cheer among the investors, given the fact that a few days back, weakness in these shares massively weighed on the market, forcing both the S&P 500 and Nasdaq to register losses for the month of June.
As per the analysts, optimism over “progress” in efforts to bring the Iran war to a lasting halt has helped stocks recoup their values, despite continued military tensions.
Iran and the United States on June 17 signed a memorandum of understanding (MoU) aimed at ending the four-month-old conflict. But exchanges of fire over the last weekend have tested that agreement. Also, there is no news about Washington and Tehran beginning another round of peace talks soon.
“We’ve had a great first half of the year, certainly better than most expected. In spite of all the geopolitical stuff, the U.S. economy is performing well and corporate earnings are strong,” said Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut.
Investors, who are looking forward to second-quarter results in the coming days, will also be mindful about headwinds like a sharp rise in oil prices during the Iran war that further ramped up concerns about inflation and interest rate hikes. Even though the conflict has subsided, traders are still pricing in at least one rate hike by the Federal Reserve by the 2026-end, according to data compiled by LSEG.
Investors, however, are still concerned about lofty valuations in the tech sector and continued massive spending on AI by tech companies. As per the strategists at BofA (Bank of America), cyclical, value-oriented sectors like energy and financials may end up being the better bet heading into the second half of the year.