Tech Resilience Pushes S&P 500 and Nasdaq to New Highs Despite Mixed Start

The S&P 500 and Nasdaq Composite edged to fresh record highs to begin the week, overcoming early weakness as mega-cap and technology names regained momentum throughout the session. Gains were modest, however, reflecting a market still reliant on a narrow leadership base.

The Dow Jones Industrial Average initially outperformed as growth stocks opened under pressure, but broader market softness ultimately dragged the index into slightly negative territory by the close.

As has been the case in recent sessions, the information technology sector (+0.5%) was central to index performance. Semiconductor stocks, which fueled last week’s rally, opened sharply lower and remained under pressure. Names such as Coherent and Super Micro Computer declined notably, contributing to a 1.0% drop in the PHLX Semiconductor Index.

Despite that weakness, NVIDIA stood out, gaining 4.0% and providing critical support to the broader market. Intel extended its post-earnings strength, while Micron and other memory-related names added to the sector’s resilience. The Vanguard Mega Cap Growth ETF managed a modest gain after recovering from early losses, highlighting improving sentiment toward large-cap growth.

Elsewhere, the communication services sector (+0.9%) led the market. Alphabet advanced ahead of its upcoming earnings release, while Verizon moved higher following a solid earnings beat and improved forward guidance.

The financials sector (+0.7%) also outperformed, supported by broad-based strength across investment managers. Meanwhile, the utilities sector and industrials sector finished little changed.

On the downside, the consumer staples sector (-1.2%) faced notable pressure, with declines across discount retailers including Dollar Tree, Dollar General, and Walmart. The consumer discretionary sector (-0.8%) also lagged, although Tesla recovered from early losses to finish higher. Amazon ended lower, and Domino’s Pizza was the session’s weakest S&P 500 component following a disappointing earnings report.

Geopolitical developments were relatively subdued, with limited new headlines surrounding U.S.-Iran negotiations after Donald Trump canceled a planned diplomatic trip to Pakistan while keeping communication channels open. Oil prices moved modestly higher, with crude settling at $96.39 per barrel, up 2.1% on the day.

Overall, the session reflected a cautious but constructive tone. While the major indices continue to grind higher, leadership remains concentrated in mega-cap and technology stocks. That dynamic faces an immediate test, with several “Magnificent Seven” companies set to report earnings this week, alongside the upcoming FOMC meeting and ongoing geopolitical developments that could reintroduce volatility.

Our FTinvest 11 model portfolio edged up 0.02% to close at 1,009.97, posting a nearly unchanged session as the portfolio continues to move sideways above the 1,000 level. The index remains below its all-time high of 1,039.51, with recent activity reflecting a period of low volatility and consolidation.

Based on the start-of-year level of 928.18, FTinvest 11 is now up approximately +8.81% year-to-date, maintaining solid gains despite muted short-term movement. The portfolio’s steady positioning underscores its disciplined, value-driven approach as it continues to navigate a balanced market environment.