S&P 500, Nasdaq End Higher To Record Best Quarter Since 2020, While Alphabet Debut Drives Dow — VZ, CMCSA, RKLB, SMCI, BATL, GOOGL In Focus

• The S&P 500 rose 1.2% and the Nasdaq 100 jumped 2.3%, while the Dow Jones added 0.6%.
• S&P 500 and Nasdaq end best quarter since 2020.  
• Comcast Corp. plans to spin off NBCUniversal and Sky. 

U.S. stock indices ended higher on Monday with the S&P 500 and Nasdaq recording their best quarter since 2020 amid a rebound in tech stocks, while the Dow hit record highs after Alphabet made its debut in the index. 

The S&P 500 rose 1.2%, the Nasdaq 100 gained 2.3% and the Dow Jones rose 0.6%. The Russell 2000, which tracks stocks with small market capitalizations, slipped 0.3%. 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) rose 1.6% and Invesco QQQ Trust (QQQ) ended Monday around 2.3% higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) ended 0.8% higher. 

Meanwhile, the VanEck Semiconductor ETF (SMH) jumped 3%.

Retail sentiment on Stocktwits for SPY and DIA was ‘bearish,’ while sentiment for QQQ was ‘bullish,’ with ‘normal’ to ‘high’ message volumes.

US Market Drivers

The S&P 500 and the Nasdaq ended the June quarter higher by 14% and 25%, respectively, their best quarterly performance since 2020, primarily driven by strong earnings and overall AI-related performance. 

“As the week begins, remember it marks the end of the quarter and the first half,” JJ Kinahan at Cboe Global Markets told Bloomberg in an interview. “That means we’re likely to see waves of volatility as institutional fund managers rebalance their portfolios. Expect some instability, but don’t overthink it.” 

An agreement between the U.S. and Iran to pause hostilities and allow the free movement of commercial cargo through the Strait of Hormuz also helped stocks gain ground. 

“Technical talks are slated to continue on all areas of the MOU,” a U.S. official told CNBC on Sunday. “Both sides will stand down for now, and vessels can move freely.”

Following retaliatory U.S. strikes on Iranian military installations over the weekend—due to Iranian activity in the Strait of Hormuz—President Donald Trump issued a warning of total destruction against Iran. On Truth Social, the President posted: "United States aircraft just struck Iranian missile and drone storage locations, and coastal radar sites, for violating the Cease Fire Agreement, AGAIN!"

U.S. West Texas Intermediate futures (CL1) climbed 1.8%, reaching $70.51 per barrel, according to data quoted by Koyfin. This follows a Friday settlement in which the WTI contract dipped below $70 for the first time since February 2 this year.

Trending Stocks To Watch 

Verizon Communications (VZ): Telecom firm BT Group Plc of the U.K. agreed to create a joint venture for its international businesses.

Comcast Corp. (CMCSA): The company announced plans to split its media and technology businesses into two separate companies. 

Rocket Lab (RKLB): The company announced plans to acquire Iridium Communications Inc. (IRDM) in a cash-and-stock deal as it looks to unlock synergies from vertical integration. 

Super Micro Computer (SMCI): The company’s offices in Taiwan were reportedly raided by government authorities. The raids expanded an ongoing investigation into the alleged smuggling of Nvidia (NVDA) chips into China via Super Micro Computer’s servers, the report stated. 

Battalion Energy (BATL): The stock recorded its best day in nearly three weeks after WTI and Brent prices gained following signs of easing hostilities in the Middle East, while an inclusion in Russell indices also pushed prices higher.  

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