Semiconductor Surge Powers Market Back to Record Territory

The stock market bounced back sharply from Monday’s pullback, with the S&P 500 and Nasdaq Composite climbing to fresh record highs as investors embraced a renewed risk-on tone. The Dow Jones Industrial Average also posted solid gains, while strength across small- and mid-cap stocks underscored broad participation in the rally.

The rebound was fueled by widespread buying interest, with all eleven S&P 500 sectors finishing at or above their flatlines. Leadership once again came from the information technology sector (+1.6%), as semiconductor stocks staged an impressive recovery following yesterday’s weakness.

The PHLX Semiconductor Index surged 4.4%, led by a standout performance from Intel after reports indicated that Apple may source chips from the company for select products. Memory-related names extended their remarkable momentum, with Micron, SanDisk, and Western Digital all reaching fresh record highs following strong earnings-driven rallies. Advanced Micro Devices also advanced ahead of its quarterly report after the close.

Software stocks were more mixed. The iShares Expanded Tech-Software Sector ETF edged slightly lower, weighed down by weakness in Palantir Technologies despite the company delivering a strong beat-and-raise earnings report.

Outside technology, the materials sector (+1.7%) led all S&P 500 sectors after lagging badly in the previous session. Nearly every component in the sector traded higher, with DuPont among the top performers following upbeat earnings. A rebound in metals prices also provided support.

The industrials sector (+0.9%) was another notable outperformer, helped by strong earnings-driven gains in Rockwell Automation and Expeditors International. Expeditors rebounded sharply after Monday’s selloff tied to Amazon launching its new Amazon Supply Chain Services platform.

Additional earnings winners included Waters Corporation and Pinterest, while Shopify and Fiserv fell sharply after disappointing post-earnings reactions.

Geopolitical headlines remained relatively subdued, helping markets regain confidence. Trump administration officials stated that Iran’s recent military activity does not constitute a breach of the current ceasefire agreement. Secretary of State Marco Rubio added that “Operation Epic Fury” has concluded, with U.S. efforts now shifting toward defensive operations designed to secure shipping traffic through the Strait of Hormuz.

Oil prices moved sharply lower as tensions eased. Crude oil futures fell 3.9% to settle at $102.16 per barrel, removing some near-term pressure from inflation expectations and risk assets.

Overall, the session reflected renewed confidence in the market’s bullish trend. Strong earnings growth, easing geopolitical concerns, and revived semiconductor leadership combined to drive equities deeper into record territory. With investors once again buying dips aggressively, momentum remains firmly tilted toward growth and technology shares.

Our FTinvest 11 model portfolio advanced 0.40% to close at 1,024.99, extending its steady upward trend and moving further above the 1,000 level. The portfolio continues to recover ground following the March correction, though it remains below the all-time high of 1,039.51.

Based on the start-of-year level of 928.18, FTinvest 11 is now up approximately +10.44% year-to-date, reinforcing its strong performance through the first four months of 2026. The portfolio’s continued resilience reflects the effectiveness of its disciplined, value-driven strategy in navigating changing market conditions.