Semiconductor Rally Sends S&P 500 and Nasdaq to Fresh Record Highs

The stock market wrapped up another record-setting week with strong gains in technology and semiconductor shares, pushing the S&P 500 and Nasdaq Composite to fresh intraday and closing highs. While leadership remained concentrated in growth and AI-related names, mixed participation across the broader market kept the Dow Jones Industrial Average essentially flat for the session.

Semiconductor stocks once again dominated the action, with the PHLX Semiconductor Index rallying sharply as investors aggressively bought Thursday’s pullback. Memory-chip leaders Micron and SanDisk surged to new all-time highs, each posting gains of more than 15%.

The momentum spread throughout the chip sector. Advanced Micro Devices climbed over 11%, while Intel extended its recent breakout with another double-digit gain as AI infrastructure enthusiasm continued to fuel the group.

The broader information technology sector was the clear market leader and the only S&P 500 sector to gain more than 0.5% on the day. Software and cloud infrastructure names also delivered notable strength.

Akamai Technologies emerged as the top-performing stock in the S&P 500 after reporting earnings and announcing a major long-term cloud infrastructure agreement. Bloomberg later reported the customer to be Anthropic, which committed roughly $1.8 billion over seven years to support expanding AI infrastructure demand.

Mega-cap technology stocks continued to provide support as well. Tesla stood out among the “Magnificent Seven,” helping lift the consumer discretionary sector higher, while strength in large-cap growth shares kept the Vanguard Mega Cap Growth ETF firmly positive.

That leadership dynamic again highlighted the divergence between cap-weighted and equal-weighted indices, with the market-cap-weighted S&P 500 outperforming the S&P 500 Equal Weight Index as investors continued concentrating exposure in AI and mega-cap growth themes.

Outside technology, the market tone was more subdued. Defensive sectors lagged notably, with the health care sector and utilities sector posting the largest declines as investors rotated away from lower-beta areas of the market.

The consumer staples sector managed to finish slightly positive thanks largely to a strong post-earnings rally in Monster Beverage.

Geopolitical developments remained in the background throughout the session. Markets showed little reaction to additional exchanges of fire between the U.S. and Iran near the Strait of Hormuz as investors continued awaiting Iran’s response to the latest U.S. peace proposal.

Oil prices edged modestly higher, with crude oil futures settling near $95.39 per barrel.

On the economic front, investors also digested the latest U.S. employment report. April nonfarm payrolls came in well above expectations, signaling continued labor-market resilience. However, softer-than-expected wage growth suggested some moderation in consumer spending power, particularly as elevated energy prices continue to pressure inflation-sensitive areas of the economy.

Despite somewhat uneven participation beneath the surface, the broader market finished the week with momentum still firmly intact. Semiconductor and AI-related stocks reasserted clear leadership following Thursday’s brief pause, while strong earnings growth and continued investor appetite for large-cap technology shares kept the rally alive heading into next week.

Our FTinvest 11 model portfolio declined 0.24% to close at 1,036.38, extending the mild pullback following this week’s move to a new all-time high. Despite the recent softness, the portfolio remains close to its record peak of 1,041.22, with overall momentum still firmly positive.

FTinvest 11 is now up approximately +1.83% for the week and +11.66% year-to-date, maintaining strong double-digit gains in 2026. The recent consolidation reflects normal market behavior after a breakout to fresh highs, while the portfolio’s disciplined, value-driven approach continues to support long-term performance.