US stocks rise and trim their losses for June
[July 01, 2026] By
STAN CHOE
NEW YORK (AP) — U.S. stocks rose Tuesday and trimmed their losses in
what had been a rocky June.
The S&P 500 gained 0.8%, though it still fell to its first losing month
following two fabulous ones. The Dow Jones Industrial Average added 136
points, or 0.3%, to its record, and the Nasdaq composite climbed 1.5%.
The main reason for the past month’s weakness was a fall to Earth for
stocks in the artificial-intelligence industry. After soaring to
tremendous heights in the frenzy around AI, such stocks came under
pressure because of worries that they shot too high. That’s a big deal
for all investors because AI stocks have grown into some of Wall
Street’s largest and most influential, pulling indexes behind them.
AI stocks were firmer Tuesday, and Nvidia was the strongest force
lifting the S&P 500 after rising 2.6% and trimming its loss for the
month. That was even though the majority of stocks within the index fell
Tuesday.
Microsoft, which is investing heavily in AI, rose 1.2% to cut its loss
for the month to 17.2%. Oracle, though, slipped 0.8% to widen its drop
for June to 35.1%. It’s another company contending with concerns that AI
may not yield enough productivity and profits to make all the big
spending worth it.
All told, the S&P 500 rose 58.93 points to 7,499.36. The Dow Jones
Industrial Average added 136.46 to 52,319.20, and the Nasdaq composite
climbed 393.58 to 26,213.72.
Outside of AI, the economy seems to be rumbling along, even though U.S.
households are still feeling sour about it. A report released in the
morning said that U.S. employers were advertising many more job openings
at the end of May than economists expected, the latest signal that the
job market remains resilient.
But a second report said that confidence among U.S. consumers improved
by less than economists expected. More Americans are saying it’s hard to
get a job, according to a survey by the Conference Board, even with data
suggesting continued hiring.
Tuesday’s relatively quiet trading came as companies closed their books
for the quarter running from April through June. Investors want to see
strong growth in profits to justify the big gains stocks made early in
the quarter. Despite June’s drop, the S&P 500 still recorded its best
quarter since six years ago, when stocks rocketed out of the crash
caused by the COVID pandemic.
Concentrix tumbled 11.2% after the technology company reported profit
and revenue for the latest quarter that were just shy of analysts’
expectations.
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Specialist Michael Pistillo works on the floor of the New York Stock
Exchange, Friday, June 26, 2026. (AP Photo/Richard Drew)
 In the oil market, prices eased
after two U.S. envoys arrived in Qatar for talks with mediators
about the implementation of an initial deal to end the war in Iran.
The Americans will not be having direct negotiations with Iranian
diplomats while in Doha.
The price for a barrel of Brent crude oil, the international
standard, erased an early, modest rise and fell 1.3% to $72.95. The
hope is that an end to the war will restore full access to the
Strait of Hormuz, allowing oil tankers to move more crude and lower
its price.
Expensive oil has already sent inflation jumping around the world,
which in turn has raised worries that the Federal Reserve and other
central banks may have to raise interest rates. Higher rates would
keep a lid on inflation, but they would also slow economic growth
and hurt prices for investments.
The yield on the 10-year Treasury rose to 4.44% from 4.38% late
Monday.
In stock markets abroad, indexes rose across much of Europe and
Asia.
Germany’s DAX returned 1.5%, and South Korea’s Kospi climbed 1% for
two of the world’s bigger gains.
Japan’s Nikkei 225 rose 0.9% as the value of the Japanese yen
dropped near its lowest level against the U.S. dollar in 40 years.
U.S. government bonds are paying much higher yields than their
Japanese counterparts, and the possibility of rate hikes by the Fed
is putting more pressure on the yen. Speculation is rising that
Japan’s government may try to prop up the yen’s value, but Japan’s
finance minister said only that the government was ready to “respond
appropriately whenever necessary.”
___
AP Business Writers Chan Ho-him and Elaine Kurtenbach contributed to
this report.
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