U.S. stocks closed a blockbuster quarter with the S&P 500 and Nasdaq posting their strongest performances since 2020, buoyed by artificial intelligence optimism. The Dow Jones Industrial Average rose 136.46 points to 52,319.20, while the S&P 500 gained 0.79% to 7,499.36 and the Nasdaq climbed 1.52% to 26,213.72 on Tuesday.

Chip stocks dominated the quarter's gains, with the PHLX Semiconductor Index surging 88% to mark its best-ever quarterly performance. Astera Labs, the $78 billion chipmaker that recently joined the Nasdaq-100, more than quadrupled in value. Super Micro Computer and Applied Materials extended gains Tuesday, rising 4.2% and 4.1% respectively, while Sandisk jumped roughly 11%.

Despite the broader tech rally, some giants stumbled. Microsoft plunged 17% in June alone, its worst month since December 2000 during the dot-com crash, and Meta finished the quarter with losses. Meanwhile, a consortium backed by BlackRock, Google and Coinbase unveiled plans for Open USD, a dollar-backed stablecoin launching later this year with 140 companies including Visa and Mastercard already signed on.

Strategy shares retreated 6.2% after Monday's surge, following the bitcoin-focused company's reversal on its "never sell" policy aimed at boosting investor confidence. Oil prices held steady near $72.92 per barrel as traders watched Middle East peace talks, with Brent crude falling 39% this quarter.