US STOCKS-Wall St set for strongest quarter in years as risk appetite holds despite US-Iran war

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Yesterday 17:36

Indexes up: Dow 0.15%, S&P 500 0.55%, Nasdaq 1.13% 
S&P, Nasdaq headed for best quarter since 2020
Energy, financials can be better bets - BofA 
Updates with late morning trading
By Niket Nishant and Avinash  P

    June 30 (Reuters) - Wall Street's main indexes were on course to close June with their strongest quarterly gains in years, underscoring the resilience of equities despite geopolitical challenges and inflation concerns.
The S&P 500 .SPX and the Nasdaq Composite .IXIC indexes were set for their best quarter in six years, while the blue-chip Dow .DJI was on track for its biggest quarterly gain since 2022.
Global stocks were also headed for their best second quarter in six years, bucking the oil shock and energy shipping disruptions due to the U.S.-Iran war.
"Unless we see evidence that the Strait of Hormuz is closed again, and that results in much more severe supply constraints, I'm not sure that geopolitical tensions are going to be the overwhelming story that drives stocks," said Gina Martin Adams, chief market strategist for HB Wealth.
At 11:52 a.m. ET, the Dow Jones Industrial Average .DJI was up 80.35 points, or 0.15%, to 52,263.09; the S&P 500 .SPX gained 41.16 points, or 0.55%, to 7,481.59 and the Nasdaq Composite .IXIC advanced 291.41 points, or 1.13%, to 26,111.55. 
"Investors can't see an end in sight to this bull run," said David Morrison, senior market analyst at Trade Nation, adding that any selloff seems to bring in a "fresh impetus to buy."
Recent weakness in heavyweight technology shares, however, has set the S&P 500 and the Nasdaq Composite on course to snap two-month winning streaks.
Strategists at BofA said cyclical, value-oriented sectors such as energy and financials could be the better bet heading into the second half.
Some analysts expect the upcoming earnings season to boost stocks. A breakthrough in the U.S.-Iran negotiations could also improve sentiment. 


Traders, however, are pricing in at least one rate hike by the Federal Reserve by the end of 2026, according to data compiled by LSEG — antithetical to expectations of easing rates earlier this year. 
Job openings edged up in May while hiring remained weak, data released on Tuesday showed. Investors will tune in to Fed Chair Kevin Warsh's comments at a high-profile economic conference in Portugal later in the day.
The S&P 500 real estate index .SPLRCR dropped 1.5% to be the biggest drag on the benchmark, hurt by a 5.3% decline in shares of Digital Realty DLR.N after the data center REIT priced a secondary share sale.
Six of the 11 major S&P 500 sector indexes were in the red. 
Shares of Concentrix CNXC.O hit a record low after the customer experience ‌firm lowered its full-year forecasts for revenue and adjusted profit.
AeroVironment AVAV.O gained 15.3%, following a jump in quarterly revenue.
Morgan Stanley MS.N shares dipped 1.4% after brokerage Oppenheimer downgraded major Wall Street investment banks, recommending that investors redeploy capital into alternative asset managers.
Advancing issues outnumbered decliners by a 1.09-to-1 ratio on the NYSE and by a 1.04-to-1 ratio on the Nasdaq. 
Neither the S&P 500 nor the Nasdaq Composite posted any new 52-week highs or lows.

 (Reporting by Niket Nishant and Avinash P in Bengaluru; Editing by Shinjini Ganguli and Joyjeet Das)
 ((Niket.Nishant@thomsonreuters.com;))