S&P 500 Gains 10% as Nasdaq Jumps 18% Despite Fed and Hormuz Fears
Updated
Updated · Kitco NEWS · Jun 30
S&P 500 Gains 10% as Nasdaq Jumps 18% Despite Fed and Hormuz Fears
3 articles · Updated · Kitco NEWS · Jun 30
Summary
U.S. stocks have held strong year-to-date despite Strait of Hormuz disruption and fears the Fed may keep policy tighter for longer, with the S&P 500 up more than 10%, the Dow posting similar gains and the Nasdaq up over 18%.
2.1% first-quarter GDP growth, a 1.2% GDPNow estimate for Q2, 172,000 June nonfarm jobs and a 4.3% unemployment rate have reinforced the case that the economy can support the rally.
85% of S&P 500 companies beat first-quarter EPS estimates and 59 issued positive guidance, both the strongest readings since Q2 2021, helping justify elevated equity valuations.
$500 billion in annual Big Tech capex—up from about $250 billion two years ago—remains the main risk, as weak returns on AI infrastructure spending could spill beyond tech and pressure the broader market.
Barclays still prefers equities over bonds, but says the recent advance has already priced in much of the good news, leaving less room for further upside.
Beyond oil, which critical supply chains face collapse from the Hormuz standoff?
Is Iran's proposed transit fee a final dealbreaker for peace in the Strait of Hormuz?
With its proxies weakened, is Iran's control of the Strait a final gamble for survival?
2026 Strait of Hormuz Blockade: Oil Transit Collapse, Economic Fallout, and the Fragile Path to Recovery
Overview
Recent tensions in the Strait of Hormuz began when Iran attacked a commercial vessel, increasing uncertainty about the region’s stability and complicating previous agreements. Iran then asserted its desire for control over its territorial waters in the Strait and proposed new service fees for ships passing through. In response to these escalations, diplomatic efforts intensified, leading to a memorandum of understanding between the United States and Iran, announced by Pakistan’s Prime Minister. Following this, former U.S. President Trump lifted the U.S. naval blockade on ships that had previously docked at Iranian ports, signaling a cautious step toward easing the crisis.