NEW YORK: Wall Street’s main indexes were on course to close June with their strongest quarterly gains in years, underscoring the resilience of equities despite geopolitical challenges and inflation concerns.
The S&P 500 and the Nasdaq Composite indexes were set for their best quarter in six years, while the blue-chip Dow was on track for its biggest quarterly gain since 2022.
Global stocks were also headed for their best second quarter in six years, bucking the oil shock and energy shipping disruptions due to the US-Iran war.
“Unless we see evidence that the Strait of Hormuz is closed again, and that results in much more severe supply constraints, I’m not sure that geopolitical tensions are going to be the overwhelming story that drives stocks,” said Gina Martin Adams, chief market strategist for HB Wealth.
At 11:52 a.m. ET, the Dow Jones Industrial Average was up 80.35 points, or 0.15 percent, to 52,263.09; the S&P 500 gained 41.16 points, or 0.55 percent, to 7,481.59 and the Nasdaq Composite advanced 291.41 points, or 1.13 percent, to 26,111.55.
“Investors can’t see an end in sight to this bull run,” said David Morrison, senior market analyst at Trade Nation, adding that any selloff seems to bring in a “fresh impetus to buy.”
Recent weakness in heavyweight technology shares, however, has set the S&P 500 and the Nasdaq Composite on course to snap two-month winning streaks.
Strategists at BofA said cyclical, value-oriented sectors such as energy and financials could be the better bet heading into the second half.
Some analysts expect the upcoming earnings season to boost stocks. A breakthrough in the US-Iran negotiations could also improve sentiment.
Traders, however, are pricing in at least one rate hike by the Federal Reserve by the end of 2026, according to data compiled by LSEG — antithetical to expectations of easing rates earlier this year.
Job openings edged up in May while hiring remained weak, data released on Tuesday showed. Investors will tune in to Fed Chair Kevin Warsh’s comments at a high-profile economic conference in Portugal later in the day.
The S&P 500 real estate index dropped 1.5 percent to be the biggest drag on the benchmark, hurt by a 5.3 percent decline in shares of Digital Realty after the data center REIT priced a secondary share sale.
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