US Market: Robust Rally In Tech Stocks Led Nasdaq To Record Best Quarter In 6 Yrs, Nasdaq 100 Reclaims 30,000

Wall Street is witnessing a strong rally in technology stocks since the start of this week, which led the Nasdaq Composite index to rise by over 955 points, recovering majorly after crashing by over 1,500 points last week. Overnight, the Dow Jones climbed marginally, while the S&P 500 index rose by 0.8%. But it was Nasdaq index that outperformed both benchmarks. Will the trend continue ahead?

Nasdaq Composite, Nasdaq 100 Indexes

The Nasdaq Composite index rallied by 393.57 points or 1.52%, to 26,213.72, extending its surge for second consecutive session. So far in two days of trading sesions, Nasdaq skyrocketed by 955.42 points, which comes after crashing by 1,503 points last week.

Yesterday, Nasdaq zoomed by over 2%.

Meanwhile, Nasdaq 100 index even outperformed Nasdaq Composite and other counterparts, by skyrocketing over 501.60 points or 1.68% to finish at 30,276.35. Accordingly, Nasdaq 100 has reclaimed above 30,000 mark after five days of volatile session. Yesterday, Nasdaq 100 index rose by 2.25%.

As per Joe Mazzola, a Charles Schwab's Head Trading & Derivatives Strategist, the June 2026 quarter turned out to be the best quarter for the S&P 500 and Nasdaq in six years, despite the Iran war. The Dow Jones Industrial Average reported its best quarter since 2022.

Among the top performers included chipmakers and AI-related companies such as Nvidia (2.6%), AMD (7.7%), Intel (6%), Sandisk (10.9%) and Marvell Technology (7.3%) posting strong advances.

The three major indexes also ended the quarter on a strong footing, with the S&P 500 rallying more than 14%, the Nasdaq soaring about 20% and the Dow adding over 12%. Investors now turn their attention to Fed Chair Kevin Warsh's appearance at the ECB Forum in Sintra, Portugal, for further clues on the outlook for monetary policy, as per Trading Economics.

Alongside Nasdaq, Dow Jones closed the June quarter at 52,319.20 and S&P 500 at 7,499.36.

What To Expect Ahead In Wall Street?

As per Charles Schwab report, concerns about possible overbought conditions and heavy leverage continue to weigh on the technology sector, though improvement in market breadth suggests some rotation has begun into other areas. Whether that continues could depend on the paths of Treasury yields and oil.

The Schwab report pointed out that it's a shortened week due to Friday's Independence Day holiday, meaning volatility could be a factor as volume thins before the long weekend. Anyone trading on Thursday might want to consider taking extra care, especially with markets liable to be choppy anyway following that morning's June nonfarm payrolls data.

"Job openings rose to a nearly two-year high in April and the ratio of job openings to the number of unemployed is back above 1.0," noted Collin Martin, head of fixed income research and strategy at the Schwab Center for Financial Research (SCFR). "Any additional strength in the labor market can help keep the Fed's hawkish bias going."

That is why Schwab believes a rate hike isn't guaranteed this year despite what the futures market might indicate.

"We're not expecting a Fed hike by year-end just yet," Martin said. "While the last Fed meeting was hawkish, we think the worst in the recent pick-up in inflation may be behind us."

Will Magnificent 7 Stocks Continue to Rally?

"While the broadening of the rally appears to be intact, and lower oil prices and yields are net bullish, I'm concerned about tech in the near-term," said Nathan Peterson, director of derivatives research and strategy, SCFR. "The sector may be susceptible to some additional deleveraging." Margin debt in the U.S. hit a record $1.42 trillion in May.

Schwab also pointed out that SpaceX soared on news its shares will become a component of the Nasdaq-100 prior to the market open on Tuesday, July 7. Since many investment products track the Nasdaq-100, they'll likely be adding shares of SpaceX to their assets under management.

This week, Nvidia stock gained nearly 4% in 2 days, while Elon Musk-backed Tesla and SpaceX outperformed tech rivals with around 12% gains in three consecutive sessions. Moreover, Alphabet stock soared nearly 6% in 2-sessions in a row, and Mark Zuckerberg's META rose by nearly 4% in three sessions straight. However, Jeff Bezos' Amazon dipped 1% yesterday, halting its two days gaining streak where it rose by 4-5%. Apple and Microsoft recovered yesterday.

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