U.S. stock markets showcased a remarkable performance in the second quarter of 2026 despite ongoing geopolitical tensions, particularly surrounding the conflict with Iran. The Dow Jones Industrial Average celebrated its best first-half showing in five years, soaring by 8.85% over the first six months, while the S&P 500 and Nasdaq Composite also recorded impressive gains of 9.55% and 12.79%, respectively. Notably, the Russell 2000, which tracks small-cap stocks, surged an impressive 21.86%, marking its best first-half performance in 25 years.
Reports indicate that U.S. envoy Steve Witkoff and Jared Kushner engaged in discussions with Qatar’s Prime Minister in Doha, following President Donald Trump’s announcement of Iran’s interest in talks. However, Tehran denied that any scheduled meetings with U.S. officials were in place, as discussions continued about Iran’s frozen assets and issues related to the Strait of Hormuz.
On the energy front, oil futures experienced an uptick in early trading. Brent crude futures rose to approximately $72.92 per barrel, while WTI crude futures increased by around 0.6%, trading at $69.94 per barrel, as traders closely monitor the U.S.-Iran situation.
In the U.S. stock market, futures demonstrated a slight retreat late Tuesday, with Dow futures declining by 0.22%, S&P 500 futures falling 0.13%, and Nasdaq 100 futures dipping 0.08% as of 9:30 PM EDT. Major ETFs such as the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) were also trading lower.
The last trading day of the quarter saw all three benchmark indexes close higher. The Nasdaq Composite led these gains, adding nearly 400 points, or 1.52%, to its total. The Dow registered a modest gain of 0.26%, closing at 52,319.20, while the S&P 500 rose by 0.79% to finish at 7,499.36.
The quarter ending in June was characterized by significant growth amid geopolitical uncertainty. The S&P 500 posted a quarterly gain of 14.87%, the Dow rose by 12.9%, and the Nasdaq leaped 21.41%. Economist Mohamed A. El-Erian observed that the strong quarterly returns marked a notable resurgence for investors, especially as the tech sector, particularly semiconductor stocks, experienced a renaissance. A major chip rally added approximately $2 trillion in market cap to leaders like Micron Technology, Intel, and Advanced Micro Devices, according to reports.
Technology stocks remained dominant contributors to market performance. Nvidia’s shares advanced by over 2.6% at the close, while AMD surged by over 7% and Intel gained 6%.
Looking ahead, all eyes will be on Federal Reserve Chairman Kevin Warsh’s upcoming address at the European Central Bank Forum on Central Banking in Portugal. Although no significant forward guidance is expected from his speech, investors will be attuned to potential insights regarding inflation and economic indicators amidst speculation of possible rate hikes later this year. Additionally, the June non-farm payroll report and the ISM Manufacturing PMI, scheduled for release later this week, are also anticipated.
On the corporate front, Nike’s shares dropped by more than 3% in after-hours trading following a noted decline in sales in China, despite reporting a more than 400% rise in net income. Bloom Energy’s shares surged by over 10% as the company announced an expanded partnership for AI infrastructure. Fuelcell Energy also experienced a significant rise of nearly 21% following favorable news regarding its financing package.
Global markets showed mixed trading behavior on Wednesday as Asian markets opened, with South Korea’s KOSPI and China’s SSE Composite index declining, while Japan’s Nikkei 225 edged higher. In addition, yields on the 10-year Treasury reached 4.457%, and gold prices fell to approximately $3,978.70 per ounce.
As the U.S. prepares to observe Independence Day, stock and bond markets will be closed on Friday, July 3.
