Tech Strength Pushes Nasdaq to Fresh Record Highs

The stock market started the week on an upbeat note, with strength in semiconductors and mega-cap names propelling the Nasdaq Composite (+0.7%) to a new record high. The S&P 500 (+0.4%) came within two points of its all-time intraday peak and closed at a record level, while the DJIA (-0.2%) slipped as mixed sector performances weighed on the blue-chip average.

Momentum in the technology space was the clear driver of today’s gains. Advanced Micro Devices (AMD 203.71, +39.04, +23.71%) soared after announcing a partnership with OpenAI, involving a 6-gigawatt commitment for AI infrastructure powered by multiple generations of AMD Instinct GPUs. As part of the deal, OpenAI received a warrant for up to 160 million AMD shares, tied to deployment and performance milestones. The news lifted the PHLX Semiconductor Index (+2.9%), though not every chipmaker participated — NVIDIA (NVDA 185.51, -2.11, -1.12%) slipped as investors assessed the competitive implications of AMD’s new AI role.

The information technology sector (+0.6%) led the advance, helped by Microsoft (MSFT 528.57, +11.22, +2.17%), while broad strength in large-caps carried the consumer discretionary (+1.0%) and communication services (+0.9%) sectors higher. Tesla (TSLA 453.25, +23.42, +5.45%) added to the rally ahead of a product unveiling teased for tomorrow.

The Vanguard Mega Cap Growth ETF (+0.9%) outperformed, helping the market-weighted S&P 500 (+0.4%) beat the equal-weighted index (-0.1%). Elsewhere, the utilities (+1.0%) and energy (+0.5%) sectors also advanced, with crude oil gaining 1.4% to $61.69 after OPEC+ confirmed an output hike for November in line with expectations.

Laggards included real estate (-1.0%), consumer staples (-0.6%), health care (-0.5%), and financials (-0.1%).

In corporate news, Fifth Third (FITB 43.79, -0.62, -1.40%) agreed to acquire Comerica (CMA 80.19, +9.64, +13.66%) in a $10.9 billion all-stock deal, forming the nation’s ninth-largest bank. Verizon (VZ 41.43, -2.24, -5.13%) fell after appointing former PayPal CEO Dan Schulman as its new chief executive.

AI-linked names rallied following OpenAI’s developer event, with Figma (+7.47%), HubSpot (+2.58%), and Salesforce (+2.25%) all posting strong gains. However, AppLovin (APP 587.00, -95.76, -14.03%) dropped sharply late in the session after reports of an SEC probe into its data-collection practices.

Even without macro catalysts, today’s action reaffirmed the market’s conviction in the AI trade, as tech leadership and mega-cap momentum continued to drive the broader market to record territory ahead of earnings season.

After a strong stretch of sessions, our FTinvest 11 model portfolio edged lower today, slipping 0.73% to close at 853.73. The day’s decline reflected a modest round of profit-taking following recent highs, with weakness concentrated in several of the portfolio’s top-weighted growth components.

Despite today’s pullback, the overall technical setup remains constructive — FTinvest 11 continues to trade comfortably above key support levels and retains a sizable lead year-to-date. The recent consolidation likely reflects natural profit-taking amid stretched valuations rather than a shift in trend.

As the week continues, attention will turn toward macro catalysts, including inflation data and the early stages of earnings season, both of which could help determine whether today’s weakness proves to be a short-lived pause or the start of a broader cooling phase for the market’s leaders.