Broader Market Rebound Regains Momentum

U.S. stocks rebounded on Wednesday as early strength in mega-cap and technology names broadened into a more inclusive advance. The S&P 500 rose 0.4%, the Nasdaq Composite gained 0.7%, and the Dow Jones Industrial Average added 0.5%, extending their record-setting streak despite a late-session pullback in technology shares.

Mega-cap performance was mixed, with several household names recovering most of Tuesday’s losses. However, fading strength in information technology weighed on index-level momentum late in the day, leaving the Vanguard Mega Cap Growth ETF only 0.1% higher. Instead, the communication services (+1.7%) and consumer discretionary (+1.0%) sectors led gains, fueled by strong moves from their largest components.

Meta Platforms climbed 1.4%, snapping a multi-day losing streak since last week’s earnings, while Alphabet added 2.4%, reapproaching record highs. Tesla surged 4.1%, recovering nearly all of its prior session’s decline despite reports of softer sales in Germany. McDonald’s advanced 2.2% after investors looked past a small earnings miss to focus on robust global same-store sales growth.

Tech stocks delivered a more uneven performance. The information technology sector slipped 0.1%, reversing earlier gains as Apple and Microsoft treaded water while NVIDIA turned lower in the afternoon. Despite NVIDIA’s reversal, chipmakers broadly outperformed—lifting the PHLX Semiconductor Index 3.0%. AMD rallied 2.5% after a strong beat-and-raise report, while Micron (+8.9%) and Seagate Technology (+10.1%) jumped on reports of rising HBM4 supply prices.

Defensive areas lagged modestly, with consumer staples (-0.3%) and real estate (-0.1%) edging lower, while utilities finished flat.

Breadth was notably stronger than in recent sessions—advancers outpaced decliners roughly two-to-one on both the NYSE and Nasdaq—marking a welcome shift from the narrow leadership that has characterized the market’s climb to record highs. The S&P 500 Equal Weighted Index rose 0.6%, outpacing the market-weighted benchmark, while small and mid-cap stocks also joined the rally, with the Russell 2000 up 1.5% and the S&P Mid Cap 400 up 0.7%.

Though some late-session profit-taking in tech pared early gains, the day’s action reflected a healthier tone beneath the surface. Broader participation and easing volatility suggested that investors are becoming more comfortable rotating beyond the mega-cap names that have dominated much of the market’s advance this year.

Our FTinvest 11 model portfolio surged 2.24% on the day, closing at 853.67, marking its strongest single-session gain in several weeks. The rally was driven primarily by one key component that delivered an outstanding quarterly earnings report, sparking a wave of buying interest across the portfolio.

The upbeat results from that standout stock reinvigorated sentiment in the index, which had recently shown signs of fatigue. Strong revenue growth and robust forward guidance from the company underscored resilience in its sector, prompting spillover gains in several related holdings.

While the rest of the index saw more moderate moves, the outsized performance of this single component provided a decisive lift, pushing FTinvest 11 back near its early-October highs. The day’s advance also contrasted with the broader market’s more measured tone, as major U.S. benchmarks posted smaller gains amid mixed sector performance.

Overall, the session reflected renewed investor confidence in the portfolio’s growth-oriented segments, with today’s sharp rise offering a reminder of the influence individual earnings catalysts can exert on the FTinvest 11 index’s trajectory.