Updated
Updated · Barchart · Jun 30
Nasdaq 100 Jumps 0.97% to 1-Week High as AI Earnings Hopes Offset Rate Worries
Updated
Updated · Barchart · Jun 30

Nasdaq 100 Jumps 0.97% to 1-Week High as AI Earnings Hopes Offset Rate Worries

3 articles · Updated · Barchart · Jun 30

Summary

  • U.S. stocks extended Monday’s rally on Q2’s final trading day, with the S&P 500 up 0.34%, the Dow 0.22% and the Nasdaq 100 leading at 0.97%.
  • 7.594 million May JOLTS openings and firmer home-price and Chicago PMI readings reinforced the economic-resilience trade, even as June consumer confidence missed forecasts at 91.2.
  • AI-linked chip and infrastructure names drove the advance, with SanDisk, KLA and Marvell up more than 6%, while Bloomberg Intelligence sees Q2 earnings rising 23% and AI infrastructure contributing nearly 60% of S&P 500 EPS growth.
  • Treasury yields climbed as stocks cut safe-haven demand and stronger labor data hardened Fed expectations, with markets pricing a 32% chance of a 25-basis-point hike at the July 28-29 meeting.
  • Global risk appetite also drew support from China’s June PMIs returning above 50 and calmer Hormuz tanker flows, though WTI stayed firm after Monday’s 2% surge ahead of U.S.-Iran talks in Doha.

Insights

With AI fueling market highs, are investors ignoring risks from China’s fragile economy and an escalating Middle East war?
Could the AI productivity boom force the Fed to keep interest rates high, stalling growth in all non-tech sectors?
As traditional safe havens falter, where can investors find shelter from escalating global economic and military conflicts?