Updated
Updated · Business Insider · Jun 30
US Stocks Cap First Half With 18% Nasdaq 100 Surge as Iran Fears Ease
Updated
Updated · Business Insider · Jun 30

US Stocks Cap First Half With 18% Nasdaq 100 Surge as Iran Fears Ease

3 articles · Updated · Business Insider · Jun 30

Summary

  • US indexes headed for their strongest quarterly and first-half performances in years on Tuesday, with the Dow up 8% for the half, the S&P 500 up 8%, and the Russell 2000 up 21%.
  • An 18% quarterly jump in the Nasdaq 100 led the rebound after markets had fallen about 10% by late March, as investors embraced easing US-Iran tensions, AI hardware winners and stronger-than-expected earnings.
  • The market's biggest catalyst was a tentative US-Iran de-escalation: both sides said Sunday they would halt strikes and allow safe commercial shipping through the Strait of Hormuz while technical talks continue.
  • Chip and memory shares powered the rally, with the Philadelphia Semiconductor Index up 80% since end-March and names such as Sandisk, Micron and Intel posting triple-digit first-half gains.
  • Corporate results reinforced the move, with 85% of S&P 500 companies beating earnings estimates as of early June and second-quarter profit growth projected at 23% year over year.

Insights

With tech stocks faltering, is the AI-fueled market rally facing a major reality check?
As the Iran conflict disrupts global oil, what is the breaking point for the world economy?