U.S. stocks were little changed on Tuesday as oil prices traded above $70 per barrel amid uncertainty surrounding the conflict in the Middle East. However, Wall Street was still set to close out a strong first half and second quarter. The Dow Jones Industrial Average traded around the flatline. The S&P 500 and Nasdaq Composite were also flat. Financial stocks were under pressure after Oppenheimer downgraded key investment banks. Goldman Sachs and Morgan Stanley, both of which were moved to underperform from perform, fell nearly 1% and more than 1%, respectively. Bank of America and Citigroup, which were rated “perform” from “outperform,” declined around 1% apiece. Stocks rallied in Monday’s session, as a pause in hostilities between the U.S. and Iran lifted sentiment. The S&P 500 rose 1.18%, while the Nasdaq Composite gained 2.07%. On Sunday, the U.S. and Iran agreed to halt their attacks and allow commercial vessels to pass through the key Strait of Hormuz waterway. A U.S. official told CNBC on Sunday that “both sides will stand down for now and vessels can move freely.” In a note on Tuesday morning, strategists at UBS said that, despite an optimistic start to the week, concerns over the sustainability of AI capex growth remain. “We believe that exposure to AI-related stocks will remain a key differentiator for equity market performance over the long run, but we also believe diversification, both within and beyond AI, is essential,” they wrote. “This means that investors can consider more defensive areas within the AI complex, such as data center operators and select payment companies, as well as other structural trends.” Tuesday marks the final day of the first half and the second quarter. The Dow has climbed 8.6% in the first six months of the year, putting it on pace for its best first-half performance since 2021, when it jumped 12.7%. The S&P 500 is also up more than 8% in the first half, while the Nasdaq has outperformed with an 11.1% advance. Additionally, the Russell 2000 has gained more than 21%, heading for its best first half since the first six months of 1991. The start of the year was characterized by volatility. While the major averages hit all-time highs, they did so in spite of wild swings in energy prices due to the Iran war as well as uncertainty around the sustainability of AI spending. The second quarter of the year, however, has been especially strong for stocks, as fears around the AI trade eased and the war appeared to near a resolution. The S&P 500 and Nasdaq have risen about 14% and 19.6%, respectively, for Q2, on pace for their biggest quarterly gain since the second quarter of 2020. The Dow has gained 12.6% in that time, headed for its strongest quarter since Q4 2022. U.S. Treasury yields were relatively unchanged on the final trading day of June, as traders look ahead to more jobs data. The yield on the key 10-year Treasury note—the main benchmark for mortgages, auto loans, and credit card debt—rose more than 1 basis point to 4.39%. The yield on the 2-year Treasury note, which closely tracks short-term Federal Reserve interest rate decisions, advanced more than 1 basis point to 4.125%. The 30-year Treasury yield, which often moves on geopolitical events, was up more than a basis point at 4.873%. Asia-Pacific markets closed mixed, with Japan’s Nikkei 225 adding 0.86% to end at 70,062.32, while South Korea’s Kospi gained 0.97% to 8,476.48. Australia’s benchmark S&P/ASX 200 was 0.51% lower, closing at 8,778.7. Hong Kong’s Hang Seng Index edged down 0.63% to settle at 22,881.02, while the mainland’s CSI 300 advanced 1.07% to 4,979.43. Oil prices were slightly higher on Tuesday as energy market participants closely monitored the potential for fresh talks between the U.S. and Iran in Qatar. International benchmark Brent crude futures with August delivery were last seen up 0.4% at $73.44 per barrel. The contract is on track to end June roughly $19 lower, or 20% lower than the closing session on May 29. Brent crude futures with September delivery, meanwhile, rose 1% at $74.69. U.S. West Texas Intermediate futures with August delivery traded 1% higher at $71.44, putting the contract on course for a $16 drop, or 19% fall, from last month’s closing. The moves come as oil traders monitor prospects for U.S.-Iran talks in Doha. Gold prices ​held near a ​seven-month low on Tuesday, remaining on track for their worst quarterly performance since the second quarter of 2013, as the dollar remained firm amid expectations of U.S. interest rate hikes. Spot gold inched ⁠up ‌0.2% at $4,022.29 per ounce after ⁠touching its lowest level since November 2025 earlier in the session. U.S. gold futures for August delivery lost 0.1% to $4,036.50/oz. “The failure to sustain gains (for gold) highlights the current fragile sentiment, where traders continue to sell ‌into strength rather than buy into weakness, a notable shift from the behaviour seen over the past few years,” said Saxo Bank analyst Ole Hansen. Bullion was ​down more than 11% for the month, on track for a fourth straight monthly decline. The precious metal was also poised for its first quarterly loss since 2024 and its biggest quarterly percentage drop since the June quarter ⁠of 2013. “Prices first need to break above $4,100 before it is reasonable to consider that a low ‌may have been established,” Hansen added. Further weighing on bullion was ‌a stronger dollar, set for a second straight monthly gain as markets priced in higher odds of Fed rate hikes.