U.S. stock markets closed significantly higher on June 29, with the Dow Jones Industrial Average reaching a record closing level, as easing tensions between the United States and Iran and a rebound in technology shares boosted investor confidence. The Dow rose 306.63 points, or 0.59%, to close at 52,182.74. The S&P 500 advanced 86.41 points, or 1.18%, to 7,440.43, while the Nasdaq Composite increased 522.53 points, or 2.07%, to 25,820.14.
The improved market sentiment followed a weekend marked by missile exchanges between the U.S. and Iran, which briefly challenged a ceasefire agreement signed on June 17. The memorandum of understanding aimed to end the four-month conflict by halting hostilities and reopening the Strait of Hormuz. Though Iran reported no meetings scheduled during the week in Doha for further negotiations, the recent hostilities did not deter market gains.
Peter Cardillo, chief market economist at Spartan Capital Securities, noted that the weekend’s flare-up had little impact on markets, which are instead focusing on the approaching second-quarter earnings season. Most S&P 500 companies are expected to begin reporting results after mid-July. Cardillo also highlighted quarter-end "window dressing"—a practice where investors purchase select stocks to enhance portfolio appearance—as a contributing factor to the market’s upward movement.
Technology-related stocks led sector gains, with the communications services sector posting notable advances. Comcast shares rose 4.5% following an announcement to split into two publicly traded entities via a tax-free spinoff of NBCUniversal and Sky. SpaceX surged 7.2% after the Nasdaq confirmed the company’s addition to the Nasdaq 100 index starting July 7. Alphabet, Google's parent company, also made a strong debut as a new Dow component, closing up 4.8% on the day.
Shares of companies linked to artificial intelligence had experienced recent selling pressure amid concerns about spending, but the information technology sector rebounded, climbing 1.7% on June 29. Supporting this optimism, RBC Capital Markets raised its 12-month target for the S&P 500 to 8,150, up from a previous estimate of 7,900, citing solid earnings prospects and favorable macroeconomic conditions.
Investors are also preparing for the July 2 U.S. jobs report, which is expected to provide further insight into the economic outlook. On the New York Stock Exchange, advancing issues outnumbered decliners by a ratio of approximately 1.54 to 1, with 272 new highs and 114 new lows recorded. On the Nasdaq, advancers exceeded decliners by about 1.57 to 1, with 3,017 stocks rising and 1,919 falling. Neither the S&P 500 nor the Nasdaq recorded any new 52-week highs or lows for the session.
Trading volume reached 20.15 billion shares across U.S. exchanges, somewhat below the 20-day average of 23.50 billion shares.