Stocks Extend Rebound as Broad-Based Rally Lifts Major Averages Back Above Key Technical Levels

The stock market delivered a second straight day of broad-based gains, lifting the S&P 500 (+0.9%), Nasdaq Composite (+0.7%), and DJIA (+1.4%) back above their 50-day moving averages and reinforcing the week’s early rebound.

The session began on shaky footing as weakness in mega-cap tech weighed on sentiment. NVIDIA (NVDA 177.82, -4.73, -2.59%) struggled after a report from The Information said Alphabet (GOOG 323.64, +5.17, +1.62%) is accelerating efforts to compete directly in the AI chip market—and that Meta Platforms (META 636.22, +23.17, +3.78%) is considering Google’s chips. Although NVIDIA responded on X that it remains “a generation ahead of the industry,” the stock still finished among the day’s biggest laggards. Advanced Micro Devices (AMD 206.13, -8.92, -4.15%) came under even greater pressure before stabilizing later in the session. Despite early tech softness, the PHLX Semiconductor Index (+0.2%) ended slightly positive, and the broader technology sector ultimately finished flat after being down more than 1% early on.

The broader market showed much stronger momentum. Eight S&P 500 sectors posted gains of 1% or more, signaling robust participation across cyclical and defensive areas. Health care (+2.2%) led the market once again, buoyed by steady inflows as investors continued shifting away from mega-cap momentum names. The sector also benefited from early details of President Trump’s healthcare plan, which includes extending ACA subsidies. Consumer discretionary (+1.9%) followed with gains across all components, boosted by homebuilders as expectations for a December rate cut remained firm. Communication services (+1.6%) also saw a strong performance thanks to strength in Alphabet and Meta. Only energy (-0.7%) and utilities (-0.4%) finished lower.

Rate-cut optimism continued to support small and mid-cap stocks. The Russell 2000 gained 2.3%, while the S&P Mid Cap 400 rose 2.0%, both outpacing the major indices. The CME FedWatch tool shows an 82.7% probability of a 25-basis-point cut in December, just slightly below yesterday’s level. Fed Governor Stephen Miran said he will not dissent toward a larger cut, indicating confidence in committee dynamics. Meanwhile, Bloomberg reported that National Economic Council Director Kevin Hassett has emerged as a frontrunner for the next Fed Chair nomination.

This morning’s economic data largely matched expectations, which helped prevent swings in rate-cut expectations. The technical picture improved as well, with all three major indices reclaiming their 50-day moving averages after last week’s decline. Market breadth was notably strong: advancers beat decliners roughly 4-to-1 on the NYSE and 3-to-1 on the Nasdaq. The S&P 500 Equal Weight Index rose 1.4%, outperforming the market-cap weighted version, underscoring a rotation into value and cyclicals.

While the major averages achieved an important technical milestone, some resistance remains. The S&P 500 ended just below the 6,770 level reached immediately after NVIDIA’s earnings last week—before sharp selling pushed it lower. Today’s strength reinforces the rebound, but the market still needs to clear overhead resistance to confirm a more durable shift in tone.

Our FTinvest 11 model portfolio delivered a strong performance today, surging 1.82% and finishing at a fresh all-time high of 897.02. The index displayed firm momentum throughout the session, steadily building on early gains and extending its breakout from yesterday’s record close.

Unlike the broader market, where leadership rotated throughout the day, FTinvest 11 showed decisive strength across several key components. A mix of growth names and cyclicals contributed to the advance, with one of the portfolio’s heavier-weighted positions leading the charge and providing the bulk of today’s upside energy.

Market sentiment remained constructive, supported by improved risk appetite and continued optimism around potential rate relief from the Fed in December. While the major indices posted a mixed performance, FTinvest 11 once again outperformed its benchmarks, reaffirming its position as one of the more resilient and steadily advancing model portfolios this month.

With today’s rally, the index not only extends its streak of higher highs but also continues to widen its year-to-date performance advantage over the S&P 500. The strong close positions FTinvest 11 well heading into the next session, as momentum and breadth within the portfolio both remain supportive of further upside.