S&P 500, Nasdaq post best quarter since 2020 despite Iran war

STORY: U.S. stocks ended the second quarter on a high note...with the Dow on Tuesday adding about a quarter of a percent to notch another record high close. The blue-chip index also registered its biggest quarterly jump in four years.Meanwhile, the S&P 500 rallied roughly eight-tenths of a percent, and the Nasdaq climbed more than one-and-a-half percent - with both indexes recording their biggest quarterly gains in six years.:: ArchiveInvestor optimism about about economic and earnings growth has helped power stocks even amid the Middle East conflict.But Eric Diton, president and managing director of The Wealth Alliance, remains cautious about a pricey market that keeps climbing higher."Now, what can stop it? No one rings a bell at the top. No one rings a bell at the bottom. But I will tell you that there are multiple just signs of froth. Signs of froth. // If you go back to Warren Buffett, no one wants to hear about Warren Buffett, but he's still the greatest investor in history in my book. And the Buffett Indicator just very simply, market value versus GDP. He says, when you're over 150%, that's a very overvalued market. Okay, well, what if you're at 218%? What's that?!"Investors have been particularly concerned about lofty valuations in the tech sector and continued massive spending on AI by those companies.Strategists at BofA said cyclical, value-oriented sectors such as energy and financials could be the better bet heading into the second half.As for Tuesday's notable stock moves, shares of Nike, down 1% at the close, tumbled at least another 8% in extended trading, after the world's largest sportswear company reported quarterly revenue that edged past estimates, but said its sales continued to fall in China, which has been a weak spot for Nike in recent quarters.