(June 30): A rally in several technology giants lifted stocks as the recent artificial-intelligence sell-off lured buyers betting the industry’s investment boom will continue to support solid corporate earnings.
In the final stretch of what’s set to be the best quarter for equities in six years, the S&P 500 rose 1.2% while the Nasdaq 100 climbed about twice as much. A gauge of the Magnificent Seven megacaps, which has largely underperformed the market this month, gained 2.6%. In a volatile session, chipmakers rebounded after posting their worst week since April 2025.
“The bounce we’re seeing is a welcome development for the bulls,” said Matt Maley at Miller Tabak. “We continue to believe strongly that the action in the tech sector will continue to be the main driver in the stock market.”
While tech doesn’t have to keep outperforming in a big way, the sector needs to refrain from declining in a significant manner due to its heavy weight in the S&P 500, he noted. Otherwise, individual investors could start “rotating” toward cash, especially after hearing so much talk about bubbles in the past year, Maley added.
The stock resurgence has defied sceptics, coming in the face of war, an oil supply shock and inflation jitters. Since bottoming three months ago, the US equity benchmark has staged one of the swiftest rebounds this century, gaining 20% from its March 30 low to its June 2 peak — something it has done just three other times since 2000.
“As the week begins, remember it marks the end of the quarter and the first half,” said JJ Kinahan at Cboe Global Markets. “That means we’re likely to see waves of volatility as institutional fund managers rebalance their portfolios. Expect some instability, but don’t overthink it.”
See also: Most US stocks rise as Warsh says price risks fading
Equities bounced despite a rise in oil prices. President Donald Trump said peace talks with Iran are set to resume on Tuesday after both sides agreed to halt a series of tit-for-tat attacks over the Strait of Hormuz. The renewed strikes served as a reminder of the fragility of their truce.
Calm prevailed in the Treasury market as the US Supreme Court ruled that Federal Reserve governor Lisa Cook can stay in her job for now, reinforcing the central bank’s independence from the White House.
“A Fed perceived as subject to political direction would likely introduce a persistent risk premium to US dollar-based assets,” said Michael Reynolds at Glenmede. “Removing that tail risk, even one that markets had only remotely priced, is a quiet but meaningful positive for the stability of the long-term rate outlook.”
See also: US stocks decline as traders await Warsh comments, fresh data
Elsewhere, a small drop sent the yen to its weakest level against the dollar since 1986.
Uploaded by Isabelle Francis
