Mega-Cap Tech Powers Markets Higher as S&P 500 Sets New Record

U.S. equities extended their advance on Tuesday, climbing steadily throughout the session as renewed strength in mega-cap technology stocks offset lingering weakness in the broader market.

The S&P 500 rose 0.5% to close at a fresh record high of 6,909.79, while the Nasdaq Composite added 0.6%. The Dow Jones Industrial Average lagged but still finished higher, up 0.2%. The rally was less inclusive, however, as smaller-cap stocks pulled back following the prior session’s outperformance. The Russell 2000 fell 0.6% and the S&P MidCap 400 declined 0.3%.

Technology stocks provided the primary lift. The information technology sector gained 1.0% after recovering from early losses, helping major indices break out of a largely flat morning trade. NVIDIA surged more than 3%, while Broadcom added over 2%, leading a broadly positive day for mega-cap tech. Sector sentiment absorbed news that tariffs on Chinese semiconductors will be implemented, though the rate will remain at 0% for the next 18 months.

Communication services also stood out, rising 1.0% and matching technology for the day’s strongest sector performance. Alphabet was a notable contributor, climbing nearly 1.4%. Energy rounded out the leadership group, up 0.6%, supported by higher oil prices. Crude futures settled $0.37 higher at $58.40 per barrel.

On the downside, losses were modest and concentrated in defensive areas of the market. Consumer staples fell 0.4%, health care slipped 0.2%, and industrials edged down 0.1%. Real estate finished the session unchanged.

Market breadth improved as the day progressed, though it remained negative overall. Early trading saw decliners overwhelm advancers by roughly two to one, but by the close the gap had narrowed, with decliners holding a slimmer advantage on both the NYSE and Nasdaq. The lack of broad participation was evident in performance dispersion, as the S&P 500 Equal Weight Index fell 0.3%, sharply underperforming the market-cap-weighted S&P 500, which benefited from a strong gain in mega-cap growth stocks.

Economic data added a layer of complexity to the session. The advance estimate of third-quarter GDP showed growth of 4.3%, well above expectations. While the robust reading raised concerns that inflation pressures could persist even as the Federal Reserve cuts rates—prompting a slight pullback in expectations for additional near-term easing—it also reinforced confidence in the underlying strength of the economy.

That constructive backdrop, combined with leadership from growth stocks in a low-volume environment, helped push major indices higher for a second consecutive session this week.

Our FTinvest 11 model portfolio closed the day at 927.07, posting a gain of 0.12%. The portfolio continues to trend upward and now sits just below its all-time high of 937.19. This steady momentum reflects the underlying strength of its value-based allocations and disciplined approach to capital deployment. Despite broader market fluctuations, FTinvest 11’s consistent positioning has helped it navigate daily volatility effectively while preserving its lead over the index for the year.