Nasdaq Jumps 0.76% to 26,015 in Early Trade, Dow Breaches 52,000 as US-Iran Ceasefire Fuels Tech Rebound

Authored By HDFC SKY | Last Modified: Jun 30, 2026 09:20 PM IST

Open Free Demat Account

Mumbai, June 30: US stock markets opened on a muted note on the final trading day of the second quarter, with major indices hovering near the flatline as investors assessed a strong quarterly performance and awaited high-stakes diplomatic developments.

The Nasdaq Composite (^IXIC) advanced 195.04 points, or 0.76%, to 26,015.18 in early trading, building on Monday’s powerful rally that saw the tech-heavy index surge 522.53 points, or 2.07%, to close at 25,820.14, its best single-day gain among major US indices.

The Dow Jones Industrial Average (^DJI) traded at 52,247.80, up 65.06 points or 0.12%, after achieving a historic milestone on Monday by closing above 52,000 for the first time at 52,182.74. The S&P 500 (^GSPC) gained 24.77 points, or 0.33%, to 7,465.20 in early trade, following Monday’s advance of 86.41 points, or 1.18%, to 7,440.43.

Dow Hits Record 52,182 as Alphabet Debut Lifts Blue-Chip Index Past Milestone

The Dow Jones Industrial Average’s historic breach of the 52,000 level was significantly bolstered by Alphabet (GOOGL), which officially joined the 30-stock index on Monday, replacing Verizon. The Google parent company’s shares surged 4.81% to $353.65 on its first day as a Dow component, providing one of the biggest boosts to the blue-chip benchmark.

Also Read: How to Invest in the US Stocks From India?

The Dow climbed 306.63 points, or 0.59%, to settle at a record 52,182.74, with the index touching an intraday high of 52,311. Caterpillar (CAT) emerged as the top Dow contributor with a 2.51% gain, while Honeywell (HON) weighed on the index, declining 0.82%. The index is now on track for its best first-half performance since 2021, having climbed more than 8% in the first six months of the year.

Nasdaq Ends Five-Day Losing Streak with 2.07% Surge as Semiconductor Stocks Lead Recovery

The Nasdaq Composite’s robust 2.07% advance marked a sharp reversal from the previous week’s selling pressure, during which the technology-heavy index had declined nearly 4.6%. The rally was broad-based, with the information technology sector gaining 1.7%, driven primarily by large-cap stocks rather than broad-based gains.

The Philadelphia Semiconductor Index surged 3.83% to 13,709.66, reflecting renewed appetite for chip-related stocks. Among the standout performers, KLA Corporation (KLAC) soared 11.97%, Applied Materials (AMAT) jumped 10.81% to trade at all-time highs since its October 1972 initial public offering, and Lam Research (LRCX) advanced 8.36%.

Astera Labs (ALAB) surged 16.39% to $455.96, adding $64.22 per share. The iShares Semiconductor ETF (SOXX) climbed 2.8%, recovering from a 5.9% plunge on the previous Friday.

Tesla Surges 8.46%, SpaceX Gains 7.15% as Growth Stocks Rebound Amid AI Spending Optimism

Major technology stocks staged a powerful recovery, with Tesla (TSLA) leading the charge with an 8.46% surge to $411.84—the largest gain among major tech names. SpaceX (SPCX) shares jumped 7.15% to $164.19 after Nasdaq announced the newly listed company would be added to the Nasdaq-100 index on July 7. Amazon (AMZN) rose 3.20% to $240.14, while Meta (META) advanced 2.24% to $562.60.

Nvidia (NVDA) snapped its five-day losing streak, climbing 1.26% to $194.97, with analysts noting that Cerebras would provide OpenAI with 750 megawatts of computing power support. However, not all tech stocks participated in the rally—Microsoft (MSFT) declined 1.17% to $368.57, and Apple (AAPL) fell 0.72% to $281.74.

The Magnificent Seven group of megacap technology stocks remains under pressure, with the cohort off more than 10% by one measure, even as the broader AI investment thesis continues to drive semiconductor stocks.

US-Iran Ceasefire Agreement Eases Geopolitical Tensions as Markets Await Doha Talks

The primary catalyst behind Monday’s rally was the easing of geopolitical tensions between the United States and Iran. Over the weekend, both sides agreed to halt mutual attacks and allow commercial vessels to pass freely through the strategic Strait of Hormuz. The US and Iran had signed a memorandum of understanding on June 17 aimed at ending four months of conflict, under which both sides agreed to cease hostilities and reopen the waterway.

President Donald Trump stated that Iran had requested a meeting that would be held on Tuesday in Doha, Qatar. However, Iran’s Foreign Ministry spokesperson Esmaeil Baghaei denied that any talks with the United States were scheduled in the coming days, stating that an Iranian technical delegation would visit Qatar but had no relation to US officials.

Despite the conflicting accounts, markets interpreted the weekend ceasefire as a positive development, with oil prices rising modestly, WTI crude gained 2.2% to $70.75 per barrel, and Brent crude advanced 1.61% to $73.15 per barrel.

Safe-Haven Assets Decline as Gold Falls 1.77%, Yen Hits 40-Year Low Against Dollar

The reduction in geopolitical risk appetite was reflected in safe-haven asset prices. Spot gold fell 1.77% to $4,016.36 per ounce, while silver dropped 1.20% to $58.28 per ounce. The US Dollar Index declined 0.25% to 101.105. However, the Japanese yen continued its historic slide, falling to 161.94 per dollar—its lowest level in nearly four decades. The yen’s weakness has prompted speculation about potential intervention by Japanese authorities, with the currency under sustained pressure as the interest rate differential between Japan and other developed nations remains wide. Bitcoin rebounded above $60,000 during trading, showing a strong correlation with technology stocks and indicating that crypto assets have become an extension of tech stock sentiment.

Oppenheimer Downgrades Goldman Sachs, Morgan Stanley as Financial Stocks Face Pressure

Financial stocks came under pressure on Tuesday after Oppenheimer downgraded several major investment banks. The brokerage moved Goldman Sachs and Morgan Stanley to “underperform” from “perform,” while Bank of America and Citigroup were downgraded to “perform” from “outperform”. Oppenheimer analyst Chris Kotowski noted that while there was nothing fundamentally worrying at present, both commercial banking and investment banking are “mature and cyclical businesses,” and the firm preferred to “take the money and run”.

Instead, Oppenheimer recommended that investors consider alternative asset managers including Ares Management, Blackstone, and KKR & Co., noting that “fear clearly rules the day and the managers’ balance sheets are not levered as the traditional intermediaries are”. AT&T (T) also faced pressure, declining 4.40%, extending losses following an earlier Oppenheimer downgrade that cited growing competition from low-earth orbit satellite service providers.

S&P 500, Nasdaq on Track for Best Quarterly Gains Since 2020 Despite June Volatility

The second quarter of 2026 is shaping up to be exceptionally strong for US equities. The S&P 500 has risen approximately 14% for the quarter, on track for its best quarterly performance since the second quarter of 2020, when it gained 19.95%. The Nasdaq Composite has surged about 20% in Q2, also pacing for its biggest quarterly gain since Q2 2020.

The Dow Jones Industrial Average has gained more than 12% during the quarter, headed for its strongest quarterly performance since the fourth quarter of 2022. However, June has proven volatile—the S&P 500 and Nasdaq are on track to snap two-month winning streaks, while the Dow has fared better and is poised for a third consecutive month of gains.

The Russell 2000 small-cap index has surged more than 21% year-to-date, heading for its best first-half performance since the first six months of 1991.

Job Openings Hold Steady at 7.59 Million as Markets Eye Thursday’s June Jobs Report

Economic data released on Tuesday showed that US job openings remained largely unchanged in May. The Job Openings and Labor Turnover Survey (JOLTS) put vacancies at 7.59 million for the month, up just 9,000 from April but higher than the Wall Street forecast of 7.3 million. Healthcare and social assistance saw a decline of 115,000 jobs, while wholesale trade increased by 71,000. Hiring, layoffs, and quits rates all saw little change on the month.

The data sets the stage for Thursday’s June non-farm payrolls report, which could determine whether the hawkish Federal Reserve repricing continues. Traders are currently pricing in at least one rate hike by the Federal Reserve by the end of 2026, a sharp reversal from expectations of two rate cuts before the Iran war.

Investors will also watch Federal Reserve Chair Kevin Warsh’s comments at the European Central Bank’s annual forum in Portugal this week, where financial stability and AI-related risks are expected to be discussed.

Nike Set to Report Q4 Earnings After Close as Corning Surges 15% on Glass Bridge Launch

Several individual names made notable moves ahead of the quarter’s end. Nike (NKE) is scheduled to report its fiscal fourth-quarter earnings after the market close on Tuesday, with analysts expecting earnings of $0.11 per share on revenue of $10.85 billion. The results are expected to provide insights into US consumer spending and retail demand.

Corning (GLW) surged more than 15% after launching its new “Glass Bridge” optical interconnect components. Concentrix fell sharply after lowering its forecasts for annual revenue and adjusted profit. Comcast rose 4.5% after announcing plans to separate into two independent, publicly traded companies through a tax-free spinoff of NBCUniversal and Sky.

AeroVironment (AVAV) rallied 30% after reporting an earnings and revenue beat, posting $1.84 per share on revenue of $642 million, compared to analyst expectations of $1.46 per share on revenue of $559 million.

The second quarter concludes with US equities posting their strongest quarterly gains in years, driven by easing geopolitical tensions and resilient AI-related investment flows. Market participants now turn their attention to Thursday’s June jobs report, which will provide critical clues on the Federal Reserve’s rate trajectory. The conflicting signals from US and Iranian officials regarding Doha talks underscore the fragility of the current ceasefire, keeping oil prices and geopolitical risk firmly on the radar as the third quarter begins.

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations

Source