S&P 500 and Nasdaq Extend Record Run as Tech Rebounds and Participation Broadens

The S&P 500 (+0.3%) and Nasdaq Composite (+0.4%) pushed to fresh record highs for a second straight session, while improved breadth across the market helped the Dow Jones Industrial Average (+0.2%) join the advance.

Early momentum carried the major averages to intraday highs shortly after the open, but the tone quickly shifted as mega-cap and technology stocks—yesterday’s primary drivers—came under modest pressure. That dip proved short-lived. Buyers stepped back in ahead of midday, lifting equities back into positive territory and reinforcing the market’s underlying bid.

The rebound was led by the information technology sector (+0.8%), which regained leadership after early weakness. The Vanguard Mega Cap Growth ETF finished modestly higher, reflecting stabilization across the market’s largest names.

Software remained a key area of strength. The iShares GS Software ETF climbed 1.7%, extending its weekly rally, with Microsoft standing out as the only “Magnificent Seven” component to post a gain exceeding 1%. Continued momentum in enterprise software signals improving sentiment after recent volatility tied to AI disruption concerns.

Semiconductors also contributed to the turnaround. The PHLX Semiconductor Index rose 1.0%, with Advanced Micro Devices delivering another standout performance, pushing its month-to-date gain beyond 30% amid increasingly constructive analyst commentary.

Notably, Taiwan Semiconducto Manufacturing Company declined despite beating earnings expectations, as softer-than-expected Q2 guidance weighed on shares. Still, management reaffirmed strong AI-driven demand, reinforcing the longer-term bullish narrative for the chip sector.

Outside of technology, market participation broadened compared to prior sessions, with seven S&P 500 sectors closing higher. The energy sector (+1.6%) led the advance as crude oil futures rose 3.7% to $94.71 per barrel. Rising oil prices, however, created headwinds for fuel-sensitive industries, contributing to weakness in the industrials sector (-0.5%) and consumer discretionary sector (-0.2%), particularly among airlines and cruise operators.

The geopolitical backdrop remains a supportive factor. President Donald Trump announced a 10-day ceasefire between Israel and Lebanon and suggested that negotiations with Iran could resume over the weekend, helping sustain a constructive risk environment.

Defensive sectors also saw renewed interest. The utilities sector (+0.7%) and consumer staples sector (+0.3%) rebounded after recent underperformance. PepsiCo supported the latter with a solid earnings beat and reaffirmed forward guidance.

In contrast, the health care sector (-0.8%) lagged as medical device names came under pressure. Abbott Laboratories declined despite strong results, after issuing below-consensus guidance.

Among individual movers, Charles Schwab was a notable laggard, falling sharply after unveiling its new “Schwab Crypto” platform—a low-cost trading solution that may disrupt existing crypto brokerage models.

Overall, the session reinforced the market’s improving tone. While gains were relatively modest, the ability to absorb early weakness and extend to new highs highlights persistent dip-buying behavior—particularly in mega-cap and technology stocks. The Nasdaq Composite has now logged its twelfth consecutive advance, underscoring the strength of the current trend.

Looking ahead, the key question is whether this rally can continue to broaden beyond tech leadership. With Q1 earnings season underway, investors will be closely monitoring whether corporate results and forward guidance can sustain current growth expectations and justify valuations at record levels.

Our FTinvest 11 model portfolio rose 0.75% to close at 1,000.48, reclaiming the 1,000 level and marking a notable step in its ongoing recovery. The move reflects renewed upward momentum, bringing the portfolio closer to its all-time high of 1,039.51.

Based on the start-of-year level of 928.18, FTinvest 11 is now up approximately +7.79% year-to-date, reinforcing its strong performance in 2026. Crossing back above the 1,000 threshold highlights the portfolio’s resilience and the effectiveness of its disciplined, value-driven strategy as it continues to build momentum.