US stocks traded mixed to higher on Tuesday, the final trading session of June, with investors balancing a rebound in artificial intelligence (AI) stocks, resilient economic data and lingering concerns over interest rates and geopolitical tensions.The S&P 500 rose 0.3 per cent to 7,465.39, while the Nasdaq Composite gained 0.76 per cent to 26,011.87.The Dow Jones Industrial Average was little changed, up 3.72 points at 52,186.46.Despite Tuesday’s gains, the S&P 500 and Nasdaq remained on course to end June with their first monthly declines after two strong months, reflecting recent weakness in heavyweight technology shares.However, Reuters reported that both indexes were still set for their best quarterly performance in six years, while the Dow was heading for its strongest quarter since 2022.
AI stocks recover after June sell-off
Artificial intelligence stocks, which have driven much of Wall Street’s rally over the past year, steadied after recent heavy selling.Nvidia rose around 1 per cent, providing one of the biggest boosts to the S&P 500.Recent declines in semiconductor and AI-related stocks have raised concerns that valuations had become stretched after the sector’s rapid rally.Brian Levitt, chief global market strategist at Invesco, said the weakness could prove temporary.“Technology has been experiencing a period of June gloom, but that could easily reverse as earnings season approaches,” Levitt said, according to Reuters.David Morrison, senior market analyst at Trade Nation, also remained optimistic about the broader market.“Investors can’t see an end in sight to this bull run. Whenever there’s a bit of a sell-off, we seem to be in a situation where you get a fresh impetus to buy,” he told Reuters.
Jobs data points to resilient economy
Investors also assessed fresh economic data that painted a mixed picture of the US economy.According to AP, job openings at the end of May came in well above economists’ expectations, suggesting the labour market remains resilient.However, a separate report showed US consumer confidence improved by less than expected, with more Americans reporting that it has become harder to find a job despite continued hiring.Attention is now shifting to Thursday’s monthly US employment report, which could influence expectations for Federal Reserve policy.Jack Ablin of Cresset Capital said the labour market data would be closely watched.“We’re looking for certainly a modestly positive report, but anything too strong could rattle investors,” Ablin told news agency AFP, noting that concerns over inflation have increased expectations of further interest rate hikes.Traders are now pricing in at least one Federal Reserve rate hike by the end of 2026, a sharp reversal from earlier expectations of policy easing.
Oil prices inch higher amid Iran diplomacy
Oil prices moved modestly higher as US officials met Qatari mediators in Doha to discuss implementation of an initial agreement aimed at ending the conflict with Iran.Brent crude rose 0.5 per cent to $74.27 per barrel, according to AP.Iran has said there are currently no plans for direct talks with the United States.Markets continue to monitor developments closely, with hopes that a lasting ceasefire would ensure uninterrupted shipping through the Strait of Hormuz, easing pressure on global energy supplies and inflation.
Corporate movers
Among individual stocks, Concentrix plunged about 20 per cent, hitting a record low after lowering its annual revenue and adjusted profit forecasts.In contrast, defence technology company AeroVironment surged 22 per cent after reporting strong quarterly revenue.Morgan Stanley slipped about 1 per cent after brokerage Oppenheimer downgraded several major Wall Street investment banks.
Global markets advance
Overseas markets were broadly positive.Germany’s DAX gained 1.3 per cent, South Korea’s Kospi rose 1 per cent, while Japan’s Nikkei 225 advanced 0.9 per cent, supported by continued weakness in the yen.Investors are also awaiting comments from Federal Reserve Chair Kevin Warsh later on Tuesday for further clues on the outlook for US monetary policy.