Nasdaq Composite: Apple Hits Record High as Tech Stocks Lift US Stock Market Today

Nasdaq and S&P 500 Surge Toward Record Highs as Tech Stocks Lead Broad Market Rally

U.S. stocks are sharply higher at midday Monday, with the Nasdaq Composite climbing 1.33% to 22,981.92 and inching closer to its all-time high of 23,119.91. The S&P 500 rose 0.93% to 6,726.11, also approaching its record level. The Dow Jones Industrial Average gained 433 points, or 0.94%, to 46,623.68, putting it within reach of its peak at 47,049.64.

The market rebound comes as investors re-enter high-growth sectors following last week’s banking concerns. Mega-cap tech stocks led the advance, driven by optimism over artificial intelligence and upcoming earnings.

What’s Driving the Tech Rally?

Apple jumped 4.3% to a record high, while Meta and Netflix each rose more than 2%. Alphabet added over 1%.

Semiconductor stocks also saw strong buying, with the Philadelphia Semiconductor Index gaining 2.2%. Micron advanced 3.6% to a record after Barclays raised its target. ON Semiconductor and KLA surged 5.6% and 4.8%, respectively.

Investor sentiment was further supported by the CBOE Volatility Index, which fell to its lowest level in over a week, indicating reduced market stress. Traders appear to be positioning for strong third-quarter earnings from the tech sector, particularly from the so-called “Magnificent Seven.”

Are Earnings Expectations Fueling Confidence?

S&P 500 companies are expected to post a 9.3% year-over-year profit gain for Q3, according to LSEG IBES. Investors are especially focused on results from Tesla, Netflix, Ford, and GM this week. These reports could reinforce—or challenge—the market’s pricing of high valuations.

Regional bank earnings will also be closely watched, given lingering credit stress concerns. Last week’s selloff, tied to the banking sector, appears to have triggered opportunistic buying in tech and industrials as the new week begins.

How Are Other Sectors Performing?

The industrials sector added nearly 1%, and the S&P Energy Index rose 0.3%. Boeing gained about 1% after receiving FAA approval to boost 737 MAX production. WeightWatchers soared 9.4% after announcing a weight-loss drug delivery partnership with Amazon.

Market breadth remained strong, with advancers outpacing decliners by over 4-to-1 on the NYSE and more than 3-to-1 on the Nasdaq.

What’s the Market Outlook This Week?

Traders are now looking to Friday’s delayed Consumer Price Index report for confirmation of easing inflation pressures. With core inflation expected to hold at 3.1%, the market is pricing in a quarter-point Fed rate cut this month, with another likely in December.

Until then, investor focus will remain on earnings and AI-driven productivity trends, which are once again steering capital toward tech. Near-term sentiment remains bullish, contingent on favorable inflation and earnings data.

More Information in our Economic Calendar.