U.S. stock indices ended higher on Monday with the S&P 500 and Nasdaq recording their best quarter since 2020. The S&P 500 rose 1.2% and the Nasdaq 100 gained 2.3%, while the Dow Jones added 0.6% as Alphabet made its debut in the index. The strong performance was driven by a rebound in tech stocks, with the S&P 500 and Nasdaq ending the June quarter higher by 14% and 25% respectively—their best quarterly gains since 2020, primarily driven by strong earnings and AI-related performance.
S&P 500 and Nasdaq Record Best Quarterly Performance Since 2020
The S&P 500 closed at 7,440.43 on Monday, while the Nasdaq 100 ended at 29,774.75 and the Dow Jones Industrial Average finished at 52,182.74. The Russell 2000, which tracks stocks with small market capitalizations, slipped 0.3%.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) rose 1.6% and Invesco QQQ Trust (QQQ) ended Monday around 2.3% higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) ended 0.8% higher. The VanEck Semiconductor ETF (SMH) jumped 3%.
"As the week begins, remember it marks the end of the quarter and the first half," JJ Kinahan at Cboe Global Markets told Bloomberg in an interview. "That means we're likely to see waves of volatility as institutional fund managers rebalance their portfolios. Expect some instability, but don't overthink it."
U.S.-Iran Agreement Supports Market Gains
An agreement between the U.S. and Iran to pause hostilities and allow the free movement of commercial cargo through the Strait of Hormuz helped stocks gain ground. "Technical talks are slated to continue on all areas of the MOU," a U.S. official told CNBC on Sunday. "Both sides will stand down for now, and vessels can move freely."
Following retaliatory U.S. strikes on Iranian military installations over the weekend—due to Iranian activity in the Strait of Hormuz—President Donald Trump issued a warning of total destruction against Iran. On Truth Social, the President posted: "United States aircraft just struck Iranian missile and drone storage locations, and coastal radar sites, for violating the Cease Fire Agreement, AGAIN!"
U.S. West Texas Intermediate futures (CL1) climbed 1.8%, reaching $70.51 per barrel, according to data quoted by Koyfin. This follows a Friday settlement in which the WTI contract dipped below $70 for the first time since February 2 this year.
Individual Stock Movements Highlight Market Activity
Verizon Communications (VZ) announced that telecom firm BT Group Plc of the U.K. agreed to create a joint venture for its international businesses.
Comcast Corp. (CMCSA) announced plans to split its media and technology businesses into two separate companies.
Rocket Lab (RKLB) announced plans to acquire Iridium Communications Inc. (IRDM) in a cash-and-stock deal as it looks to unlock synergies from vertical integration.
Super Micro Computer (SMCI) had its offices in Taiwan reportedly raided by government authorities. The raids expanded an ongoing investigation into the alleged smuggling of Nvidia (NVDA) chips into China via Super Micro Computer's servers, the report stated.
Battalion Energy (BATL) recorded its best day in nearly three weeks after WTI and Brent prices gained following signs of easing hostilities in the Middle East, while an inclusion in Russell indices also pushed prices higher.
FAQ
What did the S&P 500 and Nasdaq achieve on Monday?
The S&P 500 rose 1.2% and the Nasdaq 100 gained 2.3% on Monday, recording their best quarterly performance since 2020. The S&P 500 ended the June quarter higher by 14% and the Nasdaq by 25%, primarily driven by strong earnings and AI-related performance.
Why did U.S. stock indices gain ground on Monday?
U.S. stock indices gained ground due to a rebound in tech stocks, Alphabet's debut in the Dow Jones index, and an agreement between the U.S. and Iran to pause hostilities and allow free movement of commercial cargo through the Strait of Hormuz.
How did the U.S.-Iran agreement affect oil prices?
Following the U.S.-Iran agreement and signs of easing hostilities, U.S. West Texas Intermediate futures climbed 1.8% to reach $70.51 per barrel, according to data quoted by Koyfin.
