Tech Rebound Lifts S&P 500 Above 7,500 as Dow Reaches Another Milestone

Stocks returned from the long holiday weekend with a constructive session as renewed buying in semiconductor and mega-cap technology stocks lifted the Nasdaq Composite 1.1% and the S&P 500 0.7%. The gains pushed the S&P 500 above the 7,500 level for the first time since June 18. The Dow Jones Industrial Average added 0.3%, enough to record another all-time closing high while finishing above the 53,000 mark for the first time, despite some rotation out of defensive sectors.

Semiconductor stocks rebounded after last week’s sharp pullback, with investors largely viewing the recent weakness as a buying opportunity rather than reacting to any major industry-specific catalyst. The Philadelphia Semiconductor Index gained 2.2%, helping the information technology sector rise 1.3% and finish among the day’s top performers.

Several company-specific developments added support to the group. Advanced Micro Devices climbed 6.6% after Goldman Sachs reiterated its Buy rating and raised its price target to $640 from $450. Broadcom also moved higher after announcing an extension of its long-standing technology partnership with Apple through 2031.

Communication services led all sectors with a 1.6% gain as Meta Platforms and Alphabet rallied into the close, offsetting weakness across other components within the sector.

Tesla was another standout, surging 6.7% to recover nearly all of Friday’s losses. Its advance helped lift the consumer discretionary sector 1.0%, although performance beneath the surface remained mixed. Specialty retailers were among the day’s weakest performers, with both O’Reilly Automotive and AutoZone posting sizable declines.

The renewed leadership from large-cap growth stocks pushed the Vanguard Mega Cap Growth ETF up 1.5%, while the market-cap-weighted S&P 500 comfortably outperformed the equal-weighted version of the index, which finished essentially unchanged.

Performance across the remaining cyclical sectors was mixed. Financials gained 0.9% and industrials advanced 0.8%, while energy slipped 0.3% and materials edged 0.2% lower.

Defensive sectors generally underperformed as investors rotated back into technology. Utilities fell 1.1%, consumer staples declined 0.9%, and real estate also lost 0.9%. Health care was the lone exception among defensive groups, posting a respectable 1.2% gain.

Smaller companies also participated in the rally after lagging last week. The Russell 2000 rose 0.5%, while the S&P MidCap 400 added 0.4%.

Overall, the market returned from the holiday break on solid footing. Renewed strength in semiconductor and mega-cap technology stocks helped propel the major indices through several key milestones, while participation remained healthy across much of the market. Although leadership shifted away from defensive sectors, the underlying rotation continued to suggest investors are reallocating capital within equities rather than moving to the sidelines—a constructive sign for the broader bull market.

Our FTInvest 11 model portfolio advanced 1.32% to close at 1,004.47, reclaiming the 1,000 level for the first time since late June. The portfolio has now posted four consecutive gains, continuing its steady recovery from the correction that followed the all-time high of 1,078.93. The latest advance reduces the drawdown from the record peak to approximately 6.9%.

FTInvest 11 is now up approximately +8.22% year-to-date, reflecting a solid recovery after June’s heightened volatility. The recent string of positive sessions suggests that market confidence has improved following the company-specific challenges that weighed on performance earlier in the month. While the portfolio remains below its record high, its disciplined, value-driven investment strategy continues to demonstrate resilience and a focus on long-term capital appreciation.