The U.S. stock market is wrapping up its best start to a year since 2021.
The blue-chip Dow Jones Industrial Average is at a record high on June 30 and ending its best first-half performance in five years.
The Dow climbed 8.6% in the first six months of this year, putting it on track for its best first-half performance since 2021, when it rose 12.7%.
The benchmark S&P 500 index gained 8% in the year’s first half, while the technology-heavy Nasdaq Composite index (NDAQ) led the way with an 11% gain.
The Nasdaq is ending its best quarterly performance since 2020.
U.S. markets continue to rise due to the continued rally in stocks that are tied to the artificial intelligence (A.I.) trade.
Stocks of companies that make microchips and processors used in A.I. data centers have been the market leaders since January and continue to push indices to new heights.
Some stocks, such as those of memory chipmakers Micron Technology (MU) and SanDisk (SNDK), have more than tripled so far in 2026.
The U.S. market also got a lift in the year’s second quarter from a relief rally tied to the end of hostilities between America and Iran, which has sent crude oil prices tumbling.
Volatility at the end of the year’s first quarter gave way to a strong second quarter rally as fears around the A.I. trade subsided and the war in Iran neared a resolution.
The S&P 500 and Nasdaq indices gained 14% and 19.6%, respectively, in the second quarter, on pace for their biggest quarterly rise since the second quarter of 2020.
The Dow Jones Industrial Average rose 12.6% between April and June of this year and is headed for its strongest quarterly performance since the fourth quarter of 2022.
Tech Insider
