FX.co ★ US Stocks Rise on Tech Rally, Close Q2 on Strong Note

US stock indexes finished higher on Tuesday, lifted by strength in the technology sector and easing inflation concerns. The S&P 500 advanced 0.8%, the Nasdaq 100 climbed 1.7%, and the Dow Jones added 136 points to close at a record high of 52,319.

Chipmakers extended their rebound as investors looked beyond recent worries about stretched AI-related valuations. Confidence was bolstered by robust guidance from semiconductor manufacturers, even as hyperscaler spending remains elevated. Nvidia rose 2.6%, AMD jumped 7.7%, and Intel gained 6%.

At the same time, oil prices hovered near pre-conflict levels, easing fears that the Federal Reserve might be pushed into a renewed rate-hiking cycle. The softer inflation backdrop also underpinned more traditional sectors, helping the Dow outperform broader benchmarks in June.

For the second quarter, the S&P 500 climbed more than 14% and the Nasdaq surged about 20%, marking their strongest quarterly gains since Q2 2020. The Dow advanced over 12%, its best quarterly performance since Q4 2022.