US stocks advanced on Tuesday as the main indexes notched their best quarter in six years and traders parsed the latest economic data.
The S&P 500 Index closed 0.8% higher in New York, while the technology-heavy Nasdaq 100 Index jumped 1.7%. Both gauges finished the session with their best quarter since 2020. The Philadelphia Stock Exchange Semiconductor Index jumped 3.9%, cementing its best quarter ever.
"The second quarter has been dominated by stunning gains for chip stocks, and tech-heavy indices, a strengthening dollar that has sent the yen down to a 40-year low and shifting geopolitical risks that are playing out in commodity markets," said Kathleen Brooks, research director at XTB.
Investors pored over Tuesday's economic data, including US job openings which remained little changed in May. The figures suggest that demand remained stable alongside a recent pickup in payroll growth.
"The low-hire, low-fire job market freeze is starting to thaw," said Bill Adams, chief US economist at Fifth Third Commercial Bank. If job growth holds steady in the second half of the year, the unemployment rate should fall, providing a further boost to consumer sentiment, according to Adams.
Consumer confidence edged up in June, with falling gas prices helping offset concerns about the labor market. The Conference Board's gauge of confidence increased 0.6 point to 91.2 after a downward revision to the prior month. The median estimate in a Bloomberg survey of economists was 94.4.
Iran Latest
Peace talks between the US and Iran are set to resume in Qatar on Tuesday after both sides agreed to halt a series of tit-for-tat attacks over the Strait of Hormuz. Iran has not confirmed details of the fresh round of negotiations.
However, the Islamic Republic has reiterated its determination to control maritime traffic through the critical waterway. That's raised the stakes ahead of the talks in Doha.
"While occasional reports of renewed friction have prompted brief moves in energy markets, investors continue to price in a relatively orderly reopening of the Strait of Hormuz and a gradual normalization of global oil flows," said Daniela Hathorn, senior market analyst at Capital.com.
Among single-stock moves, AeroVironment Inc. shares surged 19% after the defense company reported fourth-quarter results that topped expectations. Concentrix Corp. shares plunged 11% after the call-center company slashed its full-year outlook.
Sectors to Watch
- US solar technology stocks and their peers rose Tuesday on reports that the Federal Communications Commission is drafting a ban on imports of foreign inverters.
- Oppenheimer cut the recommendations on Goldman Sachs Group Inc. and Morgan Stanley to underperform from market perform. It also downgraded Citigroup Inc. and Bank of America Corp. to market perform. The analyst said to sell investment bank shares and redeploy capital to cheaper alternative asset managers.
- Shares of companies that supply semiconductor equipment are soaring this week as increased investments from leading chipmakers in South Korea bolster investors' optimism.
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