The New York stock market rose across the board, driven by a rebound in artificial intelligence (AI) stocks. While military tensions in the Middle East persisted, concerns over escalation eased somewhat following a memorandum of understanding (MOU) between the U.S. and Iran, bolstering investor sentiment ahead of second-quarter earnings reports.
On June 30, the Dow Jones Industrial Average closed up 136.46 points, or 0.26%, at 52,319.20. The S&P 500 gained 58.93 points, or 0.79%, finishing at 7,499.36, while the Nasdaq composite surged 393.58 points, or 1.52%, to close at 26,213.72. The Russell 2000 index, which focuses on small-cap stocks, also rose by 13.95 points, or 0.5%, to 3,024.37.
Technology stocks led the market, with the S&P 500's tech sector showing the strongest performance. The Philadelphia Semiconductor Index climbed 3.9%, reflecting a wave of bargain buying in AI and semiconductor stocks, which had faced volatility due to recent overvaluation concerns and the burden of AI investments by major tech firms.
Quarterly performance remained robust, with the S&P 500 and Nasdaq rising 14.9% and 21.4%, respectively, marking their largest quarterly gains since 2020. The Dow also saw an increase of nearly 13%, the biggest quarterly rise since 2022. However, both the S&P 500 and Nasdaq experienced declines in June due to weakness in large tech stocks.
Investors viewed the reduced likelihood of full-scale conflict in the Middle East positively following the U.S.-Iran MOU. Nevertheless, uncertainty surrounding ongoing skirmishes and negotiations kept caution in the air. Reuters reported that a senior U.S. delegation arrived in Doha, Qatar, but high-level talks with Iran are not expected to take place.
In the bond market, U.S. Treasury yields rose. According to the Associated Press, "U.S. Treasury yields increased as oil prices fell." While declining international oil prices may ease inflationary pressures, the market continues to reflect the potential for further interest rate hikes by the Federal Reserve. Reuters cited LSEG data indicating that investors are pricing in at least one rate hike by the end of the year.
Among individual stocks, AI and semiconductor shares showed notable strength. Major semiconductor companies like Nvidia, Broadcom, and Micron rose together, driving the tech sector's rebound. Large growth stocks such as Tesla and Meta also performed well, contributing to the Nasdaq's gains. In contrast, Nike showed weakness in after-hours trading following its earnings report.
* This article has been translated by AI.
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