US stocks rose on Tuesday to cap a rip-roaring second quarter that turned around Wall Street’s 2026 fortunes, as investors assessed a remarkable run-up in chip stocks in the first half of the year and the dollar’s growing strength. <\/p>\n
The Dow Jones Industrial Average (^DJI<\/a>) edged up nearly 0.3% to post a fresh record after the blue-chip benchmark closed above 52,000<\/a> for the first time on Monday. The S&P 500 (^GSPC<\/a>) gained 0.8% to post its best quarter since 2020. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC<\/a>) rallied 1.5% as chip stocks continued their furious second quarter rally. <\/p>\n Investors headed into the last trading day of the second quarter and first half of 2026 buoyed by a Supreme Court ruling<\/a> that left Federal Reserve independence intact, for now, and by the prospect of potential US-Iran peace talks in Qatar starting Tuesday. <\/p>\n Tech’s stellar rally<\/a> this year has been driven by a surge in chip stocks over the past six months, though the sector has seen increased volatility in recent weeks. On Tuesday, the Philadelphia Semiconductor Index (SOX<\/a>) posted its best quarter on record. <\/p>\n Meanwhile, oil flows through the Strait of Hormuz are recovering faster than expected, prompting a shift from fears of crude shortages to warnings of a looming glut<\/a>. Oil prices continued to fall, poised for a quarterly drop with Brent (BZ=F<\/a>) futures trading below $74 a barrel and WTI futures (CL=F<\/a>) below $70. <\/p>\n The relentless rise in the dollar was also worrying Wall Street, as it pushed the yen to a 40-year low<\/a>, prompting talk of intervention by Japan. HSBC warned the greenback’s rally could become “explosive”<\/a> if the Federal Reserve hints it’s prepared to tighten policy<\/a> <\/p>\n