US STOCKS-S&P 500 ends best quarter since 1998 on a high note

  • Reuters
  • Stock Market News
US STOCKS-S&P 500 ends best quarter since 1998 on a high note
Credit: © Reuters.

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* U.S. consumer confidence in June rises more than expected

* Boeing (NYSE: BA ) tumbles after Norwegian Air cancels orders

* Uber up on reports of potential bid for Postmates

(Updates to market close)

By Chuck Mikolajczak

NEW YORK, June 30 (Reuters) - The S&P 500 rallied on Tuesday to finish higher and secure its biggest quarterly percentage gain in more than two decades as improving economic data bolstered investor beliefs that a stimulus-backed rebound for the U.S. economy was on the horizon.

Coming off a drop of 20% in the first quarter, the biggest quarterly decline since the financial crisis in the fourth quarter of 2008, the S&P rallied more than 19% to notch its biggest quarterly gain since 1998, at the height of the tech boom.

The gains have been fueled by unprecedented levels of fiscal and monetary stimulus and the easing of restrictions.

But the S&P 500 is still down about 4% on the year, and gains in June stood just over 1% due to the flare-up in virus cases that has threatened to delay reopenings and derail a tentative economic recovery. Federal Reserve Chairman Jerome Powell reiterated in comments on Tuesday that the path of the economy is "highly uncertain." everybody sees is if we can get something that puts an end to the spread or the spread becomes less, there is literally so much money out there that the Fed has put out there that when we turn, it is going to be a rocket ship the other way," said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.

Still, comments from Anthony Fauci, the U.S. government's top infectious diseases expert, who said there was no guarantee the United States will have an effective COVID-19 vaccine and warned the virus spread "could get very bad," were a reminder that a full economic recovery could be a long road. were capped on the Dow, pressured by a drop in Boeing Co BA.N , as the airplane maker gave back some of Monday's 14% surge after Norwegian Air NWC.OL canceled orders for 97 aircraft and said it would claim compensation. the Dow Jones Industrial Average .DJI rose 241.16 points, or 0.94%, to 25,836.96, the S&P 500 .SPX gained 48.55 points, or 1.59%, to 3,101.79 and the Nasdaq Composite .IXIC added 190.65 points, or 1.93%, to 10,064.81.

While coronavirus cases continue to surge in many states, the U.S. economy is showing signs of pickup, with data indicating consumer confidence increased much more than expected in June. U.S.-China tensions also remained a possible headwind, with Washington beginning to eliminate Hong Kong's special status under U.S. law in response to China's national security law for the territory. China said it would retaliate. of the 11 major S&P 500 sectors traded higher, with energy .SPNY stocks leading the pack.

Micron Technology Inc MU.O jumped 3.9% as it forecast higher-than-expected current-quarter revenue on strong demand for its chips that power notebooks and data centers.

The company's results also boosted other chipmakers and lifted the Philadelphia semiconductor index .SOX . UBER.N rose after reports that the ride-hailing services company was in talks to buy food-delivery app Postmates.

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