Mega-Cap Strength Fuels Broad Market Rally

The stock market rallied on Thursday, extending its weekly advance as strength in mega-cap and technology stocks spread across the broader market. The Nasdaq Composite led the gains with a 0.9% rise, while the S&P 500 added 0.6% and the Dow Jones Industrial Average climbed 0.3%. Smaller stocks outperformed, with the Russell 2000 up 1.3% and the S&P Mid Cap 400 advancing 1.4%, signaling a rotation out of defensive assets and back toward growth.

After several choppy sessions, the market’s tone improved as investors found renewed confidence in large-cap growth names. Tesla rebounded from early weakness tied to its earnings miss, reversing an initial 4% loss to close up 2.3%, helping lift the consumer discretionary sector. The rebound was aided by strong results from Las Vegas Sands, which surged more than 12% after topping estimates and hiking its dividend, underscoring resilient travel and leisure demand.

The information technology sector continued to drive the broader advance, rising 1.0% as semiconductor strength returned. Lam Research delivered an upbeat earnings report and guidance, pushing the PHLX Semiconductor Index 2.5% higher, while NVIDIA and other chipmakers followed suit. The gains in tech also helped the Vanguard Mega Cap Growth ETF advance 0.8%, reinforcing the leadership of market heavyweights.

Industrials and materials joined the rally as well, powered by upbeat earnings from Honeywell and Dow, which surged 13% on better-than-expected results. The energy sector rose 1.3% as crude oil prices jumped more than 5%, settling at $61.78 a barrel after the U.S. Treasury imposed sanctions on Russian energy firms Rosneft and Lukoil.

Defensive groups took a back seat as risk appetite returned. Consumer staples, utilities, and healthcare were flat to slightly lower, while real estate slipped marginally.

Market sentiment was further buoyed by reports of progress on trade diplomacy. CNBC reported that President Trump will travel to Asia next week to sign trade deals with a dozen nations and meet with China’s President Xi on October 30 to discuss a broader agreement, including provisions on soybeans, rare earth metals, and TikTok. Trump suggested he wanted to avoid imposing previously threatened 157% tariffs, calling them “unsustainable.”

The rebound leaves the major averages on pace for weekly gains above 1%, with Friday’s delayed release of the September Consumer Price Index set to shape the market’s rate-cut expectations. Despite some lingering uncertainty, the market’s strong close reflected improving confidence as investors shifted back into growth and cyclical plays ahead of next week’s heavy slate of corporate earnings.

Our FTinvest 11 model portfolio finished slightly lower today, dipping 0.14% to close at 845.56 after a quiet session that lacked a clear directional driver.

Our index began the day with a mild upward bias, briefly extending the prior session’s gains before momentum faded in the afternoon. Trading sentiment across the portfolio mirrored the broader market’s cautious tone as investors weighed upbeat trade headlines against lingering uncertainty ahead of key inflation data later in the week. Several growth-oriented positions saw intraday volatility but ultimately stabilized near their opening levels, while defensive components held relatively steady.

The modest decline follows a strong rebound earlier in the week and reflects a market consolidating near recent highs rather than showing signs of deterioration. With the index hovering close to the 846 level, attention now shifts to whether upcoming macro and earnings developments can reignite upside momentum or if FTinvest 11 will continue to trade in a narrow, consolidative range in the sessions ahead.