Tech-Led Rally Lifts S&P 500 and Nasdaq to Fresh Record Highs

The S&P 500 and Nasdaq Composite advanced steadily throughout the session, closing at fresh record highs and finishing at their intraday best levels. The move was driven by concentrated strength in mega-cap technology names, with software and semiconductor stocks providing the bulk of the upside momentum.

While the headline indices painted a strong picture, underlying market breadth was more mixed. Advancers only narrowly outpaced decliners on the NYSE, though participation was healthier on the tech-heavy Nasdaq. The divergence underscores how heavily index performance remains tied to leadership from the market’s largest constituents.

Sentiment received a boost after Donald Trump announced an extension of the ceasefire with Iran, granting additional time for negotiations toward a longer-term resolution. The extension came with a clear warning that failure to reach an agreement could result in renewed military action. Equities largely looked past that risk, although energy markets told a more cautious story.

Crude oil climbed to $93.01 per barrel, up 3.9% on the day, reflecting lingering uncertainty around geopolitical developments and the ongoing vulnerability of supply routes through the Strait of Hormuz. The move in oil prices tempered what might have otherwise been a broader-based rally.

Sector performance reflected that imbalance. The information technology sector (+2.3%) led convincingly, followed by the communication services sector (+1.4%) and the energy sector (+1.1%). In contrast, more cyclical and rate-sensitive areas lagged, with the real estate sector (-0.7%), industrials sector (-0.2%), financials sector (-0.2%), and utilities sector (-0.2%) finishing in negative territory.

The underperformance of industrials stood out, particularly given strong earnings-driven gains from Boeing, GE Vernova, and Masco. However, weakness in defense contractors and airlines offset those gains, with United Airlines notably declining after lowering its full-year outlook due in part to rising fuel costs.

Within technology, software stocks extended their recent rebound. Adobe helped reinforce bullish sentiment after announcing a $25 billion share repurchase program, supporting continued dip-buying interest across the group.

Mega-cap leadership remained the defining feature of the session. Apple, Amazon, and Alphabet all posted solid gains, with Alphabet also unveiling new AI-focused chips aimed at scaling next-generation training and inference workloads. The Vanguard Mega Cap Growth ETF climbed 2.0%, highlighting the concentration of flows into large-cap growth.

Tesla lagged its mega-cap peers ahead of its earnings release, finishing little changed.

In aggregate, the session reinforced a familiar dynamic: strong index performance driven by a narrow group of influential stocks. While the extension of the Iran ceasefire supported risk appetite, the rise in oil prices and uneven breadth suggest that conviction outside mega-cap technology remains limited.

Our FTinvest 11 model portfolio gained 0.94% to close at 1,015.55, rebounding after the previous session’s pullback and restoring upward momentum. The portfolio remains comfortably above the 1,000 level, continuing to trade within reach of its all-time high of 1,039.51.

Based on the start-of-year level of 928.18, FTInvest 11 is now up approximately +9.41% year-to-date, reflecting sustained strength in 2026 despite intermittent volatility. The recovery underscores the portfolio’s resilience and the effectiveness of its disciplined, value-driven strategy as it continues to navigate evolving market conditions.