US stocks traded mixed to higher on Tuesday, the final trading session of June, with investors balancing a rebound in artificial intelligence (AI) stocks, resilient economic data and lingering concerns over interest rates and geopolitical tensions, according to Business Today. The S&P 500 rose 0.3% to 7,465.39, while the Nasdaq Composite gained 0.76% to 26,011.87. The Dow Jones Industrial Average was little changed, up 3.72 points at 52,186.46.
Despite Tuesday's gains, the S&P 500 and Nasdaq remained on course to end June with their first monthly declines after two strong months, reflecting recent weakness in heavyweight technology shares, the report noted. However, both indexes were still set for their best quarterly performance in six years, while the Dow was heading for its strongest quarter since 2022, according to Reuters.
AI Stocks Recover After June Sell-off
Artificial intelligence stocks, which have driven much of Wall Street's rally over the past year, steadied after recent heavy selling. Nvidia rose around 1%, providing one of the biggest boosts to the S&P 500, according to Business Today. Recent declines in semiconductor and AI-related stocks have raised concerns that valuations had become stretched after the sector's rapid rally.
Brian Levitt, chief global market strategist at Invesco, said the weakness could prove temporary, according to Reuters:
"Technology has been experiencing a period of June gloom, but that could easily reverse as earnings season approaches."
David Morrison, senior market analyst at Trade Nation, also remained optimistic about the broader market, telling Reuters: "Investors can't see an end in sight to this bull run. Whenever there's a bit of a sell-off, we seem to be in a situation where you get a fresh impetus to buy."
Labour Market Data and Fed Rate Expectations
Investors also assessed fresh economic data that painted a mixed picture of the US economy. According to AP, job openings at the end of May came in well above economists' expectations, suggesting the labour market remains resilient. However, a separate report showed US consumer confidence improved by less than expected, with more Americans reporting that it has become harder to find a job despite continued hiring.
Attention is now shifting to Thursday's monthly US employment report, which could influence expectations for Federal Reserve policy. Jack Ablin of Cresset Capital said the labour market data would be closely watched, according to news agency AFP:
"We're looking for certainly a modestly positive report, but anything too strong could rattle investors."
Ablin noted that concerns over inflation have increased expectations of further interest rate hikes. Traders are now pricing in at least one Federal Reserve rate hike by the end of 2026, a sharp reversal from earlier expectations of policy easing, according to Business Today.
Oil Prices Inch Higher Amid Iran Diplomacy
Oil prices moved modestly higher as US officials met Qatari mediators in Doha to discuss implementation of an initial agreement aimed at ending the conflict with Iran, according to AP. Brent crude rose 0.5% to $74.27 per barrel. Iran has said there are currently no plans for direct talks with the United States. Markets continue to monitor developments closely, with hopes that a lasting ceasefire would ensure uninterrupted shipping through the Strait of Hormuz, easing pressure on global energy supplies and inflation.
Corporate Movers
Among individual stocks, Concentrix plunged about 20%, hitting a record low after lowering its annual revenue and adjusted profit forecasts, Business Today reported. In contrast, defence technology company AeroVironment surged 22% after reporting strong quarterly revenue. Morgan Stanley slipped about 1% after brokerage Oppenheimer downgraded several major Wall Street investment banks.
Global Markets Advance
Overseas markets were broadly positive. Germany's DAX gained 1.3%, South Korea's Kospi rose 1%, while Japan's Nikkei 225 advanced 0.9%, supported by continued weakness in the yen, according to Business Today.
| Index | Change | Level |
|---|---|---|
| S&P 500 | +0.3% | 7,465.39 |
| Nasdaq Composite | +0.76% | 26,011.87 |
| Dow Jones Industrial Average | +3.72 pts | 52,186.46 |
| Germany's DAX | +1.3% | — |
| South Korea's Kospi | +1.0% | — |
| Japan's Nikkei 225 | +0.9% | — |
Sources:
