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FROM MEGA CAPS TO SMALL CAPS: US STOCKS CLOSE A POWERFUL QUARTER

U.S. stocks moved higher on Tuesday, capping a strong quarter with the S&P 500 .SPX and Nasdaq .IXIC posting their biggest quarterly gains since 2020—when markets were roaring back from pandemic lows. Investors stayed optimistic about economic and earnings growth, even with ongoing tensions in the Middle East.

The Dow .DJI also had a solid run, notching its best quarterly performance since 2022. The Dow also posted a record close, as did mid caps .MID, small caps .RUT, .SPCY, the S&P 500 industrial sector .SPLRCI, the NYSE Composite .NYA and biotech .NBI.

Under the hood, it was a bit of a mixed picture. Most S&P 500 sectors actually ended lower, with real estate .SPLRCR dropping more than 2% and leading the declines. On the other hand, technology .SPLRCT stood out, jumping more than 2.5% and providing much of the market’s upside support.

Semiconductor stocks .SOX were especially strong, surging nearly 4% on the day. Notably, the SOX is now up an impressive 101.1% year to date — its best first-half performance in data going back to 1994.

Looking at the bigger picture, gains have been broad. The S&P 500 is up 9.5% so far this year, while the Nasdaq has climbed 12.8% and the Dow is ahead 8.9%. Small caps have been even stronger, with the Russell 2000 up 21.9%.

With this, the S&P 500 and Nasdaq scored their best first-half performances since 2024, while the Dow is off to its strongest start since 2021. The Russell 2000 stands out even more, delivering its best first six months since 1991.

Here’s where markets stood shortly after 4 p.m. ET:

(Terence Gabriel)

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