U.S. stocks moved higher on Tuesday during the final trading session of the second quarter and the first half of the year.
Strong labor market data and renewed gains in technology shares helped support the market. However, investors remained cautious about geopolitical risks, interest rates and the sustainability of heavy artificial intelligence spending.
S&P 500, Nasdaq and Dow Move Higher
At 12:00 ET, the S&P 500 was up 0.6% at 7,486.27 points.
The technology-heavy Nasdaq Composite climbed 1.2% to 26,131.34 points, while the Dow Jones Industrial Average gained 0.3% to 52,316.07 points.
The Nasdaq outperformed as investors returned to semiconductor and AI infrastructure stocks.
U.S. Job Openings Beat Expectations
Labor market data provided additional support for U.S. stocks.
The Bureau of Labor Statistics reported that job openings reached 7.594 million in May.
That figure exceeded economists’ expectations of approximately 7.296 million and was also slightly above April’s revised reading of 7.585 million.
The stronger result suggested that demand for workers remains resilient.
Technology Stocks Continue Their Rebound
Wall Street had already advanced on Monday, largely due to a recovery in technology shares.
The sector had weakened during the previous week as investors questioned whether the enormous spending on AI chips and data centers could be sustained.
However, sentiment improved as investors returned to companies connected to the artificial intelligence infrastructure boom.
Supreme Court Decision Offers Some Relief
Investors also reacted positively to a Supreme Court ruling that blocked President Donald Trump’s attempt to dismiss Federal Reserve Governor Lisa Cook over mortgage fraud allegations.
The decision eased concerns about political pressure on the central bank and the independence of monetary policy.
Investors Await U.S. Payrolls Report
Attention is now turning to the upcoming U.S. employment report.
The payrolls data is scheduled for release on Thursday, before U.S. markets close for the Independence Day holiday on Friday.
The report could provide important guidance on the health of the economy and the Federal Reserve’s next interest-rate move.
S&P 500 and Nasdaq Head for Strong Quarterly Gains
The S&P 500 ended a five-session losing streak in the previous trading session.
The benchmark index was on track for its strongest quarterly performance since the recovery from the pandemic-era downturn six years ago.
The Nasdaq Composite was heading for a quarterly gain of approximately 20%.
That would represent its strongest quarterly advance since the second quarter of 2020.
U.S. Stocks Post Solid First-Half Gains
Year to date, the S&P 500 had risen by approximately 8.5%.
The Nasdaq had gained around 11.1% during the same period.
Technology and artificial intelligence stocks played a major role in the first-half performance.
AI Infrastructure Spending Drives Market Volatility
Artificial intelligence remained one of the most important themes during the quarter.
Investors have been comparing hyperscale cloud companies with the chipmakers, data center suppliers and equipment manufacturers supporting the AI buildout.
Analysts at Vital Knowledge said investors had increasingly favored the companies selling infrastructure and components.
However, some market participants are beginning to question whether that trade has become too crowded.
Middle East Conflict Adds to Uncertainty
Geopolitical tensions also contributed to market volatility during the quarter.
The joint U.S.-Israeli campaign against Iran created concerns about energy supplies, inflation and the stability of the Middle East.
A framework memorandum of understanding between the United States and Iran helped reduce some of those fears.
However, several major disputes remain unresolved.
Oil Prices Return Near Pre-War Levels
Oil prices are now trading close to levels seen before the conflict began in late February.
Nevertheless, analysts have warned that the earlier surge in energy prices may still affect global inflation.
Higher fuel and transportation costs can take time to move through supply chains and consumer prices.
Federal Reserve Rate Expectations Shift
At the beginning of 2026, investors expected the Federal Reserve to begin lowering interest rates.
Those expectations have changed significantly.
Markets now believe the central bank could raise borrowing costs before the end of the year if inflation remains elevated.
U.S. government bond yields have risen as a result.
Strait of Hormuz Remains a Key Risk
Investors are also monitoring conflicting reports about the Strait of Hormuz.
The White House has suggested that the waterway has reopened to tanker traffic.
Iran, however, has demanded that it retain some control over the route.
The strait is critical to global energy markets because roughly one-fifth of the world’s oil passes through it.
U.S.-Iran Talks Remain Uncertain
The United States and Iran recently exchanged strikes around the Strait of Hormuz.
Although the attacks appear to have eased, uncertainty remains over the next stage of negotiations.
Technical discussions are expected to resume in Qatar.
However, it is still unclear when high-level talks between Washington and Tehran will begin again.
Strategy Shares Fall After Bitcoin Policy Change
Among individual stocks, Strategy shares declined after the company abandoned its long-standing policy of never selling Bitcoin.
The change raised questions about the company’s future cryptocurrency strategy.
AI Infrastructure Stocks Gain
Several companies linked to the AI infrastructure buildout moved higher.
Super Micro Computer, Sandisk and Applied Materials all gained as investors returned to the sector.
The rally reflected continued optimism about demand for servers, memory, chips and semiconductor equipment.
Nike Earnings in Focus
Nike was scheduled to publish its quarterly results after the U.S. market closed.
Investors were expected to focus on consumer demand, margins and the company’s outlook for future sales.
The results could provide further insight into the strength of consumer spending.
