US stock futures traded higher in Tuesday’s session, 30 June, as the rebound in technology and chip stocks extended, putting Wall Street on course to wrap up a strong first half of the year and the second quarter. Futures tied to the S&P 500 and Nasdaq 100 were up by 0.01%, while Dow Jones Industrial Average futures advanced 0.2%.
In the final stretch of what is set to be the best quarter for US equities in six years, the S&P 500 rose 1.2% in the previous session, while the Nasdaq 100 climbed about twice as much. A gauge of the Magnificent Seven megacap stocks, which had largely underperformed the broader market this month, surged 2.5%.
The rally in several technology giants lifted the broader market as the recent artificial intelligence-led sell-off attracted bargain hunters betting that the industry’s investment boom will continue to support robust corporate earnings. The resurgence has defied sceptics despite the backdrop of war, oil supply disruptions, and inflation concerns.
Commenting on the rebound, Vested Finance said, “After last week’s brief sell-off in technology stocks, buyers have quickly stepped back in. Chipmakers and AI-related companies were among the biggest gainers in pre-market trading, suggesting investors still believe the AI investment cycle has plenty of room to run.”
Since bottoming three months ago, the US equity benchmark has staged one of its fastest rebounds this century, rallying 20% from its 30 March low to its 2 June peak—an achievement recorded only three other times since 2000, according to Bloomberg calculations.
The Dow has climbed 8.6% in H12026, putting it on pace for its best first-half performance since 2021, when it jumped 12.7%.
The S&P 500 is also up more than 8% in the first half, while the Nasdaq has outperformed, advancing 11.1%. The Russell 2000 has also gained more than 21%, putting it on track for its strongest first half since the first six months of 1991.
Although US equities began the year on a volatile note and investor sentiment was tested after the conflict erupted in the Middle East, the relentless rally in semiconductor and AI-related stocks has helped keep the broader market resilient.
In the Middle East, President Donald Trump said peace talks with Iran are scheduled to resume on Tuesday after both sides agreed to halt a series of tit-for-tat attacks over the Strait of Hormuz, Bloomberg reported.
Investors await key US economic data
Commenting on the week’s key events, Vested Finance said, “Investors now turn their attention to a series of key US economic reports, including the JOLTS job openings data, ISM manufacturing numbers, and Friday’s closely watched non-farm payrolls report. These releases will offer fresh clues on the health of the labour market and could shape expectations around the Federal Reserve’s next interest rate decision.”
Looking ahead, Vested Finance added, “For investors, the coming week could determine whether the market has enough fuel to extend its record-breaking run. If economic data remains supportive and earnings continue to validate heavy AI spending, the current rally could broaden beyond technology. But any signs of slowing growth or sticky inflation could quickly bring volatility back to Wall Street.”
Crude oil heads for biggest quarterly decline since 2020
Crude oil prices traded with modest gains on Tuesday, with Brent crude hovering near $74 a barrel. However, the international benchmark is still on track to post its largest quarterly decline since 2020, having fallen nearly 30% during the second quarter.
Recent media reports showed that shipping traffic through the Strait of Hormuz picked up last week, adding millions of barrels of crude to the global market and easing supply concerns.
Key Middle Eastern producers, including the United Arab Emirates, Kuwait, and Qatar, have also reportedly increased oil production. Meanwhile, WTI crude futures traded around $70.70 a barrel.
Brent crude has now fallen 38% from its four-month high of $119.50 a barrel, reached shortly after the conflict erupted in the Middle East. WTI crude is also down 40.6% from its recent peak.
(With inputs from Bloomberg)
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