Wall Street surges to best quarter since 2020 as semiconductor stocks lead rally

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22 days · 8 summary articles
Wall Street surged to its best quarter since 2020 on Wednesday, with the S&P 500 jumping 14% and the Nasdaq soaring 20% as semiconductor stocks led a broad rally driven by strong labor data and easing geopolitical tensions . The Dow Jones also hit new highs, underscoring a robust market rebound that analysts attribute to resilient hiring and cooling global risks.
The gains came as U.S. job openings remained surprisingly strong at 7.6 million in May, defying expectations of a slowdown amid economic shocks . Meanwhile, European markets showed mixed signals, with the DAX nearing 25,000 points as investors awaited eurozone inflation data and U.S. economic cues .
Corporate activity remained frenetic, with mega-deals fueling a record first half for mergers and acquisitions . BlackRock CEO Larry Fink warned that New York City’s investment climate under Mayor Mamdani could push the firm to redirect capital elsewhere, citing weaker conditions . In Spain, Indra’s key commission saw a shakeup as major shareholders like Sapa and Prisa exited, leaving state-backed SEPI as the sole representative .
Tech continued to dominate, with Palantir attracting European investors despite government unease over its ties to U.S. intelligence agencies . The controversial firm’s stock surged as private capital flowed in, contrasting with cautious government stances. In a separate move, Eurobank unveiled a €1 billion plan to overhaul its digital banking services, focusing on AI and mobile platforms to modernize customer experiences .
The quarter’s standout performer, however, was the semiconductor sector, which drove the Nasdaq’s gains as AI spending showed no signs of abating. Yet not all corners of the market thrived: publicly traded credit funds reported unprofitability, signaling potential cracks in leveraged finance . Meanwhile, Greek wealth data revealed a widening gap between headline riches and household finances, with average net wealth per adult at $143,343 but persistent inequality .
As markets digest these divergent signals, the focus now turns to inflation trends and central bank policy, with European Central Bank officials like Finland’s Olli Rehn cautioning that premature rate cuts remain off the table . For now, investors are betting on continued resilience, even as geopolitical and corporate risks simmer beneath the surface.
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