Tech Momentum Lifts Markets to Fresh Highs

The stock market extended its record-setting streak today, with the S&P 500 (+0.4%), Nasdaq Composite (+0.7%), and DJIA (+0.1%) all closing at new highs. A wave of favorable headlines from the tech sector offset the absence of major economic data and macro developments, providing the day’s primary catalyst.

Trading began on a softer note, with broad but modest losses at the open. Investors, however, quickly seized the dip, encouraged by news that lifted the information technology sector (+1.7%), which went on to lead all groups.

At the policy level, White House Press Secretary Karoline Leavitt confirmed that President Trump is expected to finalize the long-discussed TikTok deal this week. Under the agreement, TikTok’s algorithm will be secured, retrained, and operated in the U.S. independent of ByteDance, with Oracle (ORCL 328.15, +19.49, +6.31%) named as the platform’s official security provider.

Momentum spread across semiconductors as NVIDIA (NVDA 183.61, +7.01, +3.97%) surged after announcing a letter of intent for a landmark partnership with OpenAI. The plan envisions at least 10 gigawatts of systems to power the next wave of AI infrastructure. The rally helped push the PHLX Semiconductor Index higher by 1.6%. Apple (AAPL 256.08, +10.58, +4.31%) also added to the sector’s strength, supported by strong global demand for the newly launched iPhone 17.

Outside of technology, performance was more uneven. Utilities (+0.9%), industrials (+0.4%), and real estate (+0.3%) managed to stay positive through the close, while materials and health care ended flat. The remaining five sectors saw modest declines, with consumer staples (-0.9%) and communication services (-0.9%) at the bottom of the leaderboard.

Consumer staples were dragged down by Kenvue (KVUE 16.96, -1.38, -7.50%), which tumbled ahead of President Trump’s scheduled speech this evening, expected to link prenatal acetaminophen use to autism. Communication services also struggled, as both Meta Platforms (META 765.16, -12.70, -1.63%) and Alphabet (GOOG 252.88, -2.36, -0.92%) posted declines, limiting further upside in the Vanguard Mega Cap Growth ETF (+0.8%).

Despite that, mega-caps ultimately provided crucial support at the index level, allowing the market-weighted S&P 500 (+0.4%) to outperform the S&P 500 Equal Weighted Index (+0.1%).

Smaller caps delivered a mixed picture: the Russell 2000 overcame early weakness to close up 0.6%, while the S&P Mid Cap 400 finished flat.

On the monetary policy front, Fed officials offered differing perspectives after last week’s 25-basis point cut. St. Louis Fed President Alberto Musalem (voting member) described policy as balanced between modestly restrictive and neutral, while Atlanta Fed President Raphael Bostic (non-voter) favored only one more cut this year. In contrast, Fed Governor Stephen Miran (voter) argued the current stance is too restrictive, advocating for rates nearly two full percentage points lower.

The day underscored a familiar theme: technology leadership remains critical to sustaining market momentum, even as debate continues over the path of monetary policy into year-end.

After a strong stretch of gains, our FTinvest 11 model portfolio eased back on Monday, closing 0.22% lower at 861.71. The session lacked the same conviction that carried the index to record highs earlier this month, as mild selling pressure kept it in negative territory throughout the day.

Although the loss was modest, today’s action reflected a breather for the index after several record closes. The dip came despite supportive market sentiment in broader benchmarks, suggesting portfolio-specific dynamics, including mixed performance across its top components, weighed more heavily.

The index continues to hold near all-time highs, with underlying momentum intact, though today’s softness shows that investors are not yet prepared to extend the rally without fresh catalysts.