Wall Street traded on track to close the second quarter with its strongest performance in years despite ongoing geopolitical uncertainty surrounding the US-Iran conflict. Investors continued buying equities, while optimism over the upcoming earnings season and easing concerns about Middle East tensions supported major indexes. 

Technology shares also recovered during Tuesday's session, although June remained a weaker month for several large-cap tech companies.

Major US indexes target strongest quarterly gains

The S&P 500 and NASDAQ Composite stayed on course for their strongest quarterly gains in six years. Meanwhile, the Dow Jones Industrial Average looked set for its best quarter since 2022.

During Tuesday trading, the S&P 500 rose 0.34%, while the NASDAQ gained 0.76%. The Dow traded nearly flat. The gains reflected continued investor confidence despite geopolitical risks and earlier market volatility caused by semiconductor weakness.

The Dow also headed toward its best first-half performance since 2021. The S&P 500 posted more than an 8% gain during the first six months of 2026 while the NASDAQ advanced over 11%. The Russell 2000 outperformed larger indexes after climbing more than 21% during the same period.

Technology Stocks Recover as Earnings Season Approaches

Technology stocks helped lift markets after suffering sharp losses earlier in June. Investors shifted attention toward the upcoming corporate earnings season, expecting strong company results to support current market valuations.

Chipmakers led Tuesday's rally. NVIDIA gained more than 1%, while Advanced Micro Devices advanced about 3%. Intel climbed roughly 4%, supporting broader semiconductor strength.

Semiconductor exchange-traded funds also delivered record quarterly gains. The VanEck Semiconductor ETF surged around 70% during the second quarter, while the iShares Semiconductor ETF gained approximately 94%. Micron ranked among the sector's strongest performers after rising about 240% during the quarter.

Despite Tuesday's rebound, June remained challenging for several technology stocks. The S&P 500 and NASDAQ still tracked toward ending two consecutive months of gains as investors reassessed AI-related valuations.

Geopolitical Developments and Interest Rates Remain in Focus

Investors continued monitoring developments involving the US and Iran. Recent signs of reduced hostilities improved market sentiment after both countries agreed to halt attacks and allow commercial shipping through the Strait of Hormuz.

Oil prices remained relatively stable despite continued uncertainty. Brent crude traded near $73 per barrel while West Texas Intermediate hovered around $70. Stable energy prices helped ease concerns over additional inflation pressure.

Markets also focused on monetary policy expectations. Traders now expect at least one Federal Reserve rate hike before the end of 2026 after stronger economic data shifted expectations away from earlier forecasts for rate cuts. Investors also awaited comments from Federal Reserve Chair Kevin Warsh following fresh job openings and consumer confidence reports.

Individual Stocks Post Mixed Performance

Several individual companies recorded notable moves during Tuesday's session. Concentrix shares fell more than 20% after the company lowered its full-year revenue and adjusted profit forecasts, pushing the stock to a record low.

In contrast, AeroVironment surged about 22% after reporting a strong increase in quarterly revenue. Morgan Stanley slipped around 1% after Oppenheimer downgraded major Wall Street investment banks and encouraged investors to consider alternative asset managers.

European markets also ended higher on the final trading day of June. Technology stocks led regional gains, while major indexes in Germany, France, Italy and the United Kingdom all closed in positive territory.

Although analysts continue monitoring geopolitical developments and interest rate expectations, strong corporate earnings and resilient investor demand have kept Wall Street positioned for one of its strongest quarters in recent years.

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