S&P 500, Nasdaq mark best quarter since 2020
US equities finished June higher, with the S&P 500 and Nasdaq Composite posting their strongest quarter since 2020 and the Dow Jones Industrial Average closing at a record high, driven by semiconductor gains and resilient earnings expectations.
Market overview
| Index | 30 Jun 2026 Close | Move & % Change (day) | Comments |
|---|---|---|---|
| S&P 500 | 7,498.38 | +55.97 pts (+0.75%) | Ended best quarter since 2020, earnings optimism. |
| Nasdaq Comp. | 26,194.76 | +374.62 pts (+1.45%) | Up 21% in Q2 on AI and tech strength. |
| Dow Jones | 52,298.91 | +116.17 pts (+0.22%) | Record close, strongest first half since 2021. |
- S&P 500 gained 9.6% in the first half of 2026.
- Nasdaq Composite rose more than 12% in H1 and 21% in Q2.
- Dow advanced 8.9% in H1, its best first half since 2021.
- Russell 2000 climbed nearly 22% in H1, best first half since 1991.
- For June, S&P 500 slipped 1.1%, Dow rose 2.5%, Nasdaq fell 2.8%.
Chip stocks and ETF performance
- Nvidia gained 2.6% on the day.
- Advanced Micro Devices (AMD) jumped 7.7%.
- Intel climbed 6%.
- VanEck Semiconductor ETF (SMH) rose over 3% on the day.
- SMH is up about 70% in Q2 and 82% year to date.
- iShares Semiconductor ETF (SOXX) has surged about 94% in Q2.
- Micron has risen about 240% during the quarter.
- Super Micro Computer featured among top S&P 500 losers for the day.
Quarterly and half-year highlights
- S&P 500 and Nasdaq delivered their biggest quarterly gains since 2020.
- All three major indices touched record highs during the first half.
- Technology remained among the biggest sector gainers in the S&P 500.
- AI-related spending and the so-called AI boom underpinned Nasdaq’s 21% Q2 rise.
- Value stocks outperformed growth stocks year to date and in June.
- Cyclical, value-oriented sectors like energy and financials are seen as potential second-half leaders.
Macro backdrop and Iran conflict
- The first half saw sharp swings in energy prices linked to the Iran war.
- Iran and the United States signed an MoU on June 17 to end the four-month conflict.
- Exchanges of fire over the subsequent weekend tested that agreement.
- A Qatari official said visiting US envoys in Doha would not hold a high-level meeting with Iran.
- Optimism over progress toward a lasting halt in the conflict has supported risk sentiment.
Earnings, rates and strategist views
- Investors remain upbeat about US economic and earnings growth.
- “We’ve had a great first half of the year, certainly better than most expected,” said Oliver Pursche, senior vice president and advisor at Wealthspire Advisors.
- “In spite of all the geopolitical stuff, the U.S. economy is performing well and corporate earnings are strong,” Pursche added.
- After a strong Q1 earnings season, investors now await Q2 results.
- Tim Holland of Orion said the key lesson was that “Earnings matter more than just about anything, except for maybe interest rates.”
- Holland noted value stocks have led gains year to date and in June.
- He expects the bull market to broaden if US-Iran hostilities do not escalate.
- Strategists at BofA see energy and financials as better positioned heading into H2.
- Traders are pricing at least one US Federal Reserve rate hike by end-2026, per LSEG data.
Economic indicators
- The Conference Board Consumer Confidence Index rose to 91.2 in June.
- The reading missed expectations of 94.2.
- The share of respondents saying jobs are “hard to get” hit the highest since January 2021.
- US job openings stood at 7.59 million in May, per JOLTS.
- Openings were little changed from April but above expectations of 7.3 million.
- Hiring, layoffs and quits showed little change in May.
Asia and global read-through
- US equities just completed their best quarter in six years.
- Asian stocks were set to open higher on Wednesday, tracking the US rally.
- Gains in chipmakers and signs of economic resilience boosted optimism on global earnings.
S&P 500 top movers
Top gainers
| Stock | Sector | Notable Factor |
|---|---|---|
| Honeywell Intl | Industrials | Listed among top S&P 500 gainers for the session. |
| Corning | Materials / Tech | Featured in top gainers list. |
| KLA | Semiconductors | Included in S&P 500 gainers on the day. |
| Western Digital | Technology | Ranked among leading gainers. |
- Gainers data reflects S&P 500 constituents on 30 June 2026.
Top losers
| Stock | Sector | Notable Factor |
|---|---|---|
| Coterra Energy | Energy | Listed among top S&P 500 losers for the session. |
| Super Micro Computer | Technology | Featured in top losers list. |
| Copart | Services | Included in S&P 500 losers. |
| Ulta Beauty | Consumer | Ranked among leading decliners. |
- Weakness in heavyweight technology shares has weighed on markets in recent weeks.
Technical and positioning cues
- All three major indices remain near record territory after H1 gains.
- Semiconductor ETFs are on track for their strongest quarter on record.
- Elevated interest rates are seen as a headwind for high-priced growth stocks.
- Higher rates can be a tailwind for economically sensitive and value stocks.
Outlook for the second half of 2026
- Investors will watch Q2 earnings for confirmation of profit resilience.
- Market participants are monitoring Iran conflict developments for risk sentiment shifts.
- AI capital expenditure trends remain a focal point for technology valuations.
- Broader participation beyond mega-cap tech is expected if value and cyclicals sustain gains.
Q: How did the S&P 500 and Nasdaq perform in Q2 2026?
- A:
– S&P 500 and Nasdaq recorded their biggest quarterly gains since 2020.
– Nasdaq rose 21% in Q2, driven by technology and AI-related stocks.
Q: What drove semiconductor stocks and ETFs higher in the first half of 2026?
- A:
– Strong demand linked to AI and data center spending supported chipmakers.
– SMH gained about 70% in Q2 and 82% year to date, while SOXX rose about 94% in Q2.
Q: How is the Iran conflict affecting US markets?
- A:
– The conflict contributed to energy price volatility in H1.
– A June MoU between Iran and the US and signs of progress toward a halt have supported risk appetite, though recent exchanges of fire keep geopolitical risk elevated.
Frequently Asked Questions
How did the S&P 500 and Nasdaq perform in Q2 2026?
The S&P 500 and Nasdaq delivered their biggest quarterly gains since 2020, with the Nasdaq up 21% in Q2, driven largely by technology and AI-related stocks.
Why are semiconductor ETFs like SMH and SOXX in focus?
Semiconductor ETFs surged on strong demand tied to AI and data centers: SMH is up about 70% in Q2 and 82% year to date, while SOXX has gained about 94% in Q2, putting both on track for record quarters.
What role did the Iran conflict play in market moves?
The Iran war caused swings in energy prices but did not derail the rally. A June memorandum of understanding between Iran and the US and hopes of a lasting halt supported sentiment, though recent exchanges of fire keep geopolitical risks in focus.
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