By Heard on the Street Staff

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What Happened in Markets Today

Stocks rose, capping a strong quarter. The S&P 500 and the Nasdaq rose 0.8% and 1.5% respectively in the final session of the second quarter. For the three-month period, the S&P 500 rose 14.9%, its best quarterly performance in six years.

The yen fell to a 40-year low. The Japanese currency is down around 3.5% against the dollar this year. A dollar on Tuesday bought a little more than 162 yen, the weakest level for the Japanese currency since 1986. This has made Japan a more affordable and popular tourist destination, but is raising the cost of living for ordinary Japanese. Traders are once again on high alert for a fresh intervention by Japanese authorities, even though Tokyo has already burned through more than $70 billion of foreign-exchange reserves to prop up the yen so far this year.

Home prices edged up. The S&P Cotality Case-Shiller National Home Price Index, which measures home prices across the country, rose 0.8% in the 12 months through April, compared with a 0.7% increase in March. In real terms, however, U.S. home values fell for the eleventh month in a row, as inflation outpaced home price growth.

The Supreme Court struck down limits on political party spending. Among other major decisions unveiled Tuesday, the Supreme Court struck down federal limits on how much money political parties can spend in coordination with candidates for public office. In a 6-3 decision, the court sided with Vice President JD Vance and Republican officials who argued that the coordinated spending limits violated their freedom of speech.

Markets at a Glance

One Big Story

Federal Reserve Chairman Kevin Warsh wants to talk less about monetary policy so markets can respond independently to economic data. Many investors, though, think he's already said plenty.

At his first Fed meeting as chairman, Warsh shortened the Fed's policy statement, declined to submit an interest-rate forecast and deflected some questions on economic and policy matters to newly established task forces. But he still communicated a tougher line on inflation than previously assumed. Bond yields climbed. Stocks slid.

Even if Warsh talks less than some of his predecessors, his words could still have just as much impact, said Alex Obaza, a fixed-income portfolio manager at T. Rowe Price.

What's Coming Up

  • Companies reporting earnings Wednesday include General Mills, National Beverage Corp. and Lotus Technology.
  • There will also be the manufacturing PMI readings for June and construction spending data for May.

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About Us

Markets P.M. catches you up on the day's most important markets moves, delivered after the closing bell. This email was written by Aaron Back, Editor of Heard on the Street, The Wall Street Journal's home for financial analysis and commentary. To send us your feedback, reply to this email. Got a tip for us? Here's how to submit.