U.S. stock indices closed higher on Monday, capping a remarkable quarter for equities driven by strong earnings momentum and widespread gains across the artificial intelligence sector.
The S&P 500 rose 1.2% on the day, while the Nasdaq 100 surged 2.3% and the Dow Jones Industrial Average added 0.6%, with the Russell 2000 slipping 0.3%.
For the full June quarter, the S&P 500 gained 14% and the Nasdaq climbed 25%, marking the best quarterly performance for both indices since 2020.
The Dow Jones reached record highs after Alphabet (NASDAQ: GOOGL), Google’s parent company, made its official debut as a component of the blue-chip index.
Among benchmark ETFs, the SPDR S&P 500 ETF Trust (SPY) rose 1.6%, the Invesco QQQ Trust (QQQ) gained approximately 2.3%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) advanced 0.8%.
The VanEck Semiconductor ETF (SMH) also posted a strong session, jumping 3% as tech and chip stocks led the broader market rally.
Easing tensions in the Middle East further supported market sentiment, following an agreement between the U.S. and Iran to pause hostilities and allow commercial cargo to move freely through the Strait of Hormuz.
“Technical talks are slated to continue on all areas of the MOU,” a U.S. official told CNBC on Sunday, adding, “Both sides will stand down for now, and vessels can move freely.”
The agreement came after retaliatory U.S. strikes on Iranian military installations over the weekend, with President Donald Trump posting on Truth Social: “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 climbed 1.8% to $70.51 per barrel, recovering after the WTI contract briefly dipped below $70 for the first time since February 2.
JJ Kinahan at Cboe Global Markets offered investors a measured outlook, telling Bloomberg: “As the week begins, remember it marks the end of the quarter and the first half. 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.”
Rocket Lab (NASDAQ: RKLB) grabbed headlines after announcing plans to acquire Iridium Communications Inc. (NASDAQ: IRDM) in a cash-and-stock deal aimed at unlocking synergies through vertical integration.
Comcast Corp. (NASDAQ: CMCSA) announced plans to split its media and technology operations into two separate publicly traded companies, spinning off NBCUniversal and Sky into a standalone entity.
Super Micro Computer (NASDAQ: SMCI) faced renewed scrutiny after reports emerged that Taiwanese authorities raided its offices as part of an expanding investigation into the alleged smuggling of Nvidia (NASDAQ: NVDA) chips into China through its servers.
Battalion Energy (NASDAQ: BATL) recorded its best single-session performance in nearly three weeks, buoyed by rising oil prices and its inclusion in Russell indices, which provided an additional tailwind to shares.
Verizon Communications (NYSE: VZ) also drew attention after U.K. telecom firm BT Group Plc agreed to form a joint venture covering its international business operations.
