Wall Street ended the quarter with broad gains as investors focused on corporate earnings, economic resilience and tentative diplomatic progress despite continued tensions tied to the Iran war.
By yourNEWS Media Newsroom
The S&P 500 and Nasdaq posted their strongest quarterly performances since 2020 on Tuesday, finishing higher as investors continued to bet on economic growth and corporate earnings despite ongoing military tensions in the Middle East.
Technology shares helped lead Tuesday’s gains, making the sector one of the strongest performers in the S&P 500 for the session. The rally came as markets continued to draw support from optimism that the United States and Iran may still move toward a lasting halt in the four-month-old conflict.
Washington and Tehran signed a memorandum of understanding on June 17 aimed at ending the war. The agreement has been tested by new exchanges of fire over the weekend, and a Qatari official said Tuesday that senior U.S. envoys who arrived in Doha would not hold a high-level meeting with Iranian officials.
Even with those uncertainties, investors remained focused on the strength of the U.S. economy and the outlook for company profits.
“We’ve had a great first half of the year, certainly better than most expected,” said Oliver Pursche, senior vice president and adviser for Wealthspire Advisors in Westport, Connecticut.
“In spite of all the geopolitical stuff, the U.S. economy is performing well and corporate earnings are strong,” Pursche said.
The strong finish follows a solid first-quarter earnings season for S&P 500 companies. Investors are now looking ahead to second-quarter results, which are expected to begin in the coming weeks.
According to preliminary data, the S&P 500 rose 55.97 points, or 0.75%, to close at 7,498.38. The Nasdaq Composite climbed 374.62 points, or 1.45%, to 26,194.76. The Dow Jones Industrial Average gained 116.17 points, or 0.22%, to finish at 52,298.91.
The quarterly gains marked the best showing for the S&P 500 and Nasdaq since 2020, reflecting investor confidence in economic resilience despite geopolitical risk and recent pressure on some major technology stocks.
Heavyweight technology shares had weighed on the broader market in recent weeks, but Tuesday’s rebound helped lift the major indexes.
Strategists at BofA said cyclical and value-oriented sectors, including energy and financials, may offer stronger opportunities heading into the second half of the year.
Interest rate expectations remain another concern for markets. Traders are pricing in at least one Federal Reserve rate hike by the end of 2026, according to data compiled by LSEG.
Nike was scheduled to report quarterly earnings after the closing bell, giving investors another look at consumer demand and corporate performance as the second half of the year begins.
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