The U.S. stock market just wrapped up its best quarter in six years, and President Donald Trump is taking a victory lap. The S&P 500 surged nearly 15% over the past three months, its strongest quarterly performance since the COVID-19 recovery in 2020. The milestone comes as indirect negotiations between the United States and Iran concluded in Doha, easing fears of a broader conflict and sending oil prices to four-month lows.

A Tech-Driven Rally

The S&P 500 closed at 6,528.52 on March 31 and hit 7,499.3 by June 30, a 14.87% gain. The rally was largely fueled by mega-cap tech stocks, which jumped almost 30% between late March and May. Names like Amazon.com Inc. (AMZN), Apple Inc. (AAPL), Microsoft Corp. (MSFT), Meta Platforms Inc. (META), Tesla Inc. (TSLA), and Nvidia Corp. (NVDA) led the charge.

The broader market also saw solid gains. The Dow Jones Industrial Average rose 8.9% in its best first half since 2021. Investors have been closely watching the geopolitical landscape, betting that the U.S.-Iran conflict might be winding down.

Technical Talks in Doha

The market rally coincided with two days of indirect, mediator-led talks between American and Iranian delegations in Doha. According to Reuters, the discussions were strictly technical, focusing on stabilizing maritime traffic in the Strait of Hormuz and unfreezing Iranian assets. No breakthrough on a lasting peace was announced, but the tone was cautiously optimistic.

President Trump projected confidence. “The denuclearization of Iran is moving along well,” he told reporters in Washington. “They’ve had very good meetings, and we’ll see.”

Vice President JD Vance, however, clarified that broader nuclear discussions are still ahead. “Obviously, we’re worried about the nuclear issue; we’re going to start talking about that,” Vance said.

Oil Markets React

Even without a formal peace deal, the easing of tensions has already hit energy markets. Oil prices tumbled to their lowest level in four months, providing a tailwind for the U.S. economy. WTI crude futures fell 1.01% to $67.89, while Brent crude dropped 0.96% to $70.88. The next round of U.S.-Iran talks is scheduled after July 9.

Market Performance in 2026

Year-to-date, the S&P 500 is up 9.11%, the Nasdaq Composite has gained 12.07%, and the Dow is up 8.11%. On Wednesday, the SPDR S&P 500 ETF Trust (SPY) closed down 0.14% at $745.76, while the Invesco QQQ Trust ETF (QQQ) fell 1.52% to $725.17. The Dow tracker, State Street SPDR Dow Jones Industrial Average ETF Trust (DIA), edged up 0.0019%.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.