Mega-Cap Momentum Fuels Market Rebound, Led by Apple’s Manufacturing Push

The stock market bounced back, regaining ground lost during the prior session thanks to strong performances from mega-cap stocks and a calm macro backdrop that allowed early bullish sentiment to carry through the day.

Markets opened with confidence, driven by strength in heavyweight names like Apple, which jumped 5.1% after news broke that the company would announce a $100 billion increase in domestic manufacturing investment at the White House—bringing its total U.S. investment to $600 billion. While India, a key manufacturing partner for Apple, is set to face a combined 50% tariff due to its continued import of Russian oil, White House officials clarified that Apple would not be materially impacted, further bolstering investor optimism.

Trade news was otherwise limited, with little follow-through on headlines. Swiss President Karin Keller-Sutter reportedly left Washington without reaching a deal to lower the 39% tariff facing Swiss imports, while President Trump’s social media update about a “highly productive” meeting between his envoy and President Putin lacked actionable details. Neither story moved the market.

Instead, momentum from mega-cap names carried the day. The consumer discretionary sector led the pack with a 2.4% gain, lifted by solid rallies in Amazon (+4.0%) and Tesla (+3.6%). Walmart added fuel to the rally in consumer staples (+1.7%) with a strong showing, while Apple’s performance helped push the information technology sector up 1.3%.

In total, six of the eleven S&P 500 sectors finished in the green. The market-weighted S&P 500 rose 0.7%, notably outperforming the equal-weighted index, which slipped 0.2%. This divergence underscored how much Tuesday’s gains leaned on large-cap leadership. The Vanguard Mega Cap Growth ETF surged 1.5%.

Earnings reports produced a mixed bag of results. McDonald’s posted its strongest quarter since Q4 2023, advancing nearly 3% and supporting further gains in consumer discretionary. Disney, on the other hand, declined 2.7% despite beating earnings estimates, capping upside in communication services (+0.7%).

Health care was the worst-performing sector (-1.5%) following a 5% decline in Amgen shares after concerns about weak drug sales overshadowed the company’s earnings beat. The semiconductor space also came under pressure, as AMD (-6.4%) and Cirrus Logic (-7.4%) slumped post-earnings. As a result, the PHLX Semiconductor Index ended the day down 0.2%.

Oil prices dropped to their lowest levels since early June, down 1.2% to $64.34 per barrel, weighing on the energy sector (-0.9%). Utilities (-0.9%), real estate (-0.8%), and materials (-0.8%) also finished in the red, though their declines didn’t stop the broader indexes from finishing near session highs.

The S&P 500 closed up 0.7%, the Nasdaq Composite rose 1.2%, and the Dow added a modest 0.2%.

Although today’s rally wasn’t as broad-based as Monday’s, it showed that investor appetite to “buy the dip” remains intact—especially in the tech-heavy corners of the market. Still, with little on the macro calendar, the sustainability of the rebound could hinge on further clarity around trade policy and the earnings calendar in the days ahead.

Our portfolio FTinvest 11 continued its upward march today, building on recent gains and pushing deeper into record territory. The portfolio posted a solid 0.34% gain for the session, with the index closing at a new all-time high of 816.36.

This latest advance underscores the portfolio’s strong momentum as it maintains its lead over broader benchmarks, powered by resilient performance across key holdings.