Stocks wrap up best quarter in years — though more – Business News
Stocks on Tuesday wrapped up their strongest quarter in years as merchants shrugged off issues about an AI bubble and hoped for a closing peace deal with Iran – however more volatility might be in store this yr.
The Dow Jones Industrial Average jumped 0.3%, or 136.46 factors, for a file close of 52,319.20 Tuesday, whereas the S&P 500 and Nasdaq rose 0.8% and 1.5%, respectively.
After weeks of wobbly tech stock trading, shares in chipmakers helped lead the rise Tuesday, with Nvidia, Advanced Micro Devices and Intel gaining 2.6%, 7.7% and 6%, respectively. The VanEck Semiconductor ETF additionally rose more than 3% – and it’s up 82% up to now this yr.
Stocks on Tuesday wrapped up their strongest quarter in years. REUTERS
As Tuesday marked the ultimate day of the primary half of 2026, the Dow wrapped up its best six-month stretch since 2021, whereas the S&P 500 and Nasdaq clinched their largest quarterly positive factors for the reason that pandemic.
Markets had been largely influenced by the motion of oil costs relative to the struggle in Iran and back-and-forth issues about AI stock valuations – and there are lots more components that would affect shares in the third quarter.
“In the next quarter, markets are going to be driven by what happens in the Iran conflict, expectations for the November elections, performance by SpaceX and expectations for the Anthropic IPO,” Kenin Spivak, chief govt of SMI Group, instructed The Post.
“If hostilities resume in Iran, it will reverse recent gains in the market. It also could depress pricing if markets expect the Democrats to take control of both houses [of Congress], because that would potentially paralyze the Trump administration.”
Ken Mahoney, chief govt of Mahoney Asset Management, stated he expects a bull market transferring ahead – however buyers ought to nonetheless “continue to expect volatility in both directions.”
“July has strong historical statistics, yet quarter three of midterm years can be quite weak and volatile,” Mahoney stated.
Markets had been largely influenced by oil costs and issues round AI stock valuations. Studio KN – stock.adobe.com
“There will come a time where markets start to hone in on midterm elections and their potential outcomes, and we know September has tricky history,” he added. “We have seen many late summer doldrums and that could be in the cards for the market this year.”
Investors may also be preserving a close eye on the Federal Reserve and new chairman Kevin Warsh for any clues on the place rates of interest are headed – though the market has up to now “taken it in stride” following Warsh’s surprisingly hawkish speech on June 17, Mahoney stated.
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In the primary six months of 2026, the Dow climbed 8.9% – its best first-half efficiency since 2021, when it rose 12.7%. The S&P 500 and Nasdaq rose 9.6% and 12%, respectively, over the identical period.
The Russell 2000, a small-cap index, gained more than 21% in the primary half of this yr – its best consequence for the reason that first six months of 1991.
While the primary quarter of 2026 was comparatively robust, the second was even stronger – regardless of swings associated to greater oil costs and issues that tech corporations may be overspending on AI.
The S&P 500 and Nasdaq jumped 14.9% and 21.4%, respectively, in the second quarter for his or her largest quarterly gain for the reason that second quarter of 2020. The Dow rose 12.9% over the identical period for its strongest quarter for the reason that finish of 2022.
