Stock market today: Dow hits record, S&P 500 jumps to cap best quarter since 2020 amid massive chip rally

US stocks rose on Tuesday to cap a rip-roaring second quarter that turned around Wall Street’s 2026 fortunes, as investors assessed a remarkable run-up in chip stocks in the first half of the year and the dollar’s growing strength.

The Dow Jones Industrial Average (^DJI) edged up nearly 0.3% to post a fresh record after the blue-chip benchmark closed above 52,000 for the first time on Monday. The S&P 500 (^GSPC) gained 0.8% to post its best quarter since 2020. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) rallied 1.5% as chip stocks continued their furious second quarter rally.

Investors headed into the last trading day of the second quarter and first half of 2026 buoyed by a Supreme Court ruling that left Federal Reserve independence intact, for now, and by the prospect of potential US-Iran peace talks in Qatar starting Tuesday.

Tech’s stellar rally this year has been driven by a surge in chip stocks over the past six months, though the sector has seen increased volatility in recent weeks. On Tuesday, the Philadelphia Semiconductor Index (SOX) posted its best quarter on record.

Meanwhile, oil flows through the Strait of Hormuz are recovering faster than expected, prompting a shift from fears of crude shortages to warnings of a looming glut. Oil prices continued to fall, poised for a quarterly drop with Brent (BZ=F) futures trading below $74 a barrel and WTI futures (CL=F) below $70.

The relentless rise in the dollar was also worrying Wall Street, as it pushed the yen to a 40-year low, prompting talk of intervention by Japan. HSBC warned the greenback’s rally could become “explosive” if the Federal Reserve hints it’s prepared to tighten policy

A JOLTS reading on job openings in May came in better than expected on Tuesday, though the hiring rate remained low. The data is likely to feed into bets on Fed interest rate hikes this year, as it sets the stage for Thursday’s June jobs report.