U.S. stocks ended sharply higher on Tuesday, to close the first half on a high, as the S&P 500 and the Nasdaq recorded their best quarterly jump since 2020, while the Dow registered its biggest quarterly gain since 2022.  All three major indexes ended in positive territory.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.3% or 136.46 points, to finish at 52,319.20 points, recording a new all-time closing high.  

The S&P 500 jumped 0.8%, or 58.93 points, to end at 7,499.36 points. Tech and industrial stocks were the biggest gainers.

The Information Technology Select Sector SPDR (XLK) gained 2.8%. The Industrials Select Sector SPDR (XLI) jumped 1.4%. Seven of the 11 sectors of the benchmark index ended in negative territory.

The tech-heavy Nasdaq climbed 1.5%, or 393.58 points, to finish at 26,213.72 points.

The fear gauge, the CBOE Volatility Index (VIX), was down 6.80% to 16.45. Advancers outnumbered decliners on the NYSE by a 1.06-to-1 ratio. On the Nasdaq, a 1.14-to-1 ratio favored advancing issues. A total of 19.97 billion shares were traded on Tuesday, lower than the last 20-session average of 23.40 billion.

On the NYSE, there were 349 new highs and 154 new lows. On the Nasdaq, there were no new highs and no new lows. Also, on the S&P 500, there were no new 52-week highs and no new lows.

Chip Stocks Rally as Q2 Ends on a High

Chip stocks, which suffered last week, made a rebound on Monday. The rally continued on Tuesday as the broader market finished the quarter and the first half of 2026 on a high. The quarterly and half-yearly rally was once again driven by AI-related big tech stocks.

Shares of Advanced Micro Devices, Inc. ((AMD Quick QuoteAMD - Free Report) ) ended 7.7% higher, while Sandisk Corporation ((SNDK Quick QuoteSNDK - Free Report) ) jumped 10.9%. Sandisk carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

It has been an eventful first half and second quarter for markets. Stocks started the year on a high, with all three major indexes hitting multiple all-time closing highs. However, volatility existed in the markets as the Middle East conflict saw oil prices making wild swings from hitting record highs to easing substantially in the past few weeks.

Also, concerns over the sustainability of AI stocks led to massive selloffs in tech stocks from time to time. However, the second quarter proved to be particularly good for stocks, as the Dow, the S&P 500 and the Nasdaq continued their rally on the optimism that hostilities between the United States and Iran would eventually come to a halt, and fears surrounding AI-related stocks eased.

Hostilities between the two nations have continued over the weekend, but the United States, late Sunday, said that it will cease all hostilities immediately.

Investors are now looking forward to the second-quarter earnings season, which begins mid-July after solid first-quarter results from several companies.

Economic Data

The S&P/Case-Shiller House Price Index for single-family homes across 20 metropolitan areas rose 1.1% in April, higher than the consensus estimate of a rise of 0.9%.

In a separate report, the Consumer Board said that the consumer confidence index rose 0.6 points to 91.2 in June.

Monthly Roundup

The Dow gained 2.6% in June. The S&P 500 declined 1.5% for the month, while the Nasdaq lost 3.3% for the month.

Quarterly Roundup

For the quarter, the Dow gained 12.9%, recording its best quarter since the fourth quarter of 2022. The S&P 500 and Nasdaq rose 14.9% and 21.4%, respectively, in the second quarter, recording their best quarter since second-quarter 2020.

Half-Yearly Roundup

The S&P 500 gained 9.6% in the first six months of the year. The Nasdaq closed 12% higher in the first half of the year. The Dow rose 8.9% in the first six months of 2026, to record its best first-half performance since 2021.