S&P 500 Closes Out Losing Month, Spectacular Quarter

US stocks rose Tuesday and trimmed their losses in what had been a rocky June.

• The S&P 500 rose 58.93 points, or 0.8%, to 7,499.36, though it still fell to its first losing month following two fabulous ones.
• The Dow Jones Industrial Average rose 136.46 points, or 0.3%, to 52,319.20, adding to its record.
• The Nasdaq composite rose 393.58 points, or 1.5%, to 26,213.72.

Stocks in the artificial-intelligence industry were strong following sharp swings earlier in the month on worries they'd grown too expensive, the AP reports. Stock indexes rose in much of Europe and Asia, while the Japanese yen fell near a 40-year low against the US dollar.

The main reason for this month's weakness has been a fall to Earth for stocks in the artificial-intelligence industry. After soaring to tremendous heights in the frenzy around AI, such stocks have come 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, fell 0.8% to bring its drop for June to 35.1%. It's another company contending with concerns that big spending on AI may not yield enough productivity and profits to make it worth it.

Outside of AI, the economy seems to be rumbling along, even though US households are still feeling sour about it. A report released in the morning said that US 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 US 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.

• Japan's Nikkei 225 rose 0.9% as the value of the Japanese yen dropped near its lowest level against the US dollar in 40 years. US 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."