Nasdaq 100 and S&P 500: Nvidia, Microsoft Push Tech Sector Up — Bullish Rebalancing Across US Indices

Tech Stocks Lead Rebound as Wall Street Rises on Shutdown Relief and AI Optimism

U.S. equity benchmarks posted solid gains Monday afternoon, powered by strength in technology shares and renewed optimism around a potential end to the government shutdown.

The Nasdaq Composite outperformed, jumping 2.05% to 23,475.65, while the S&P 500 climbed 1.30% to 6,816.60. The Dow Jones Industrial Average gained 0.53%, supported by strong performances from NVIDIA and 3M.

What’s Driving the Rally in Tech and Communication Services?

Technology and communication services led the charge, rising 2.35% and 2.22% respectively, as investors rotated back into growth stocks.

Shares of NVIDIA rose 4.81% following renewed enthusiasm around AI-linked names, with Broadcom and AMD also advancing.

Microsoft added 1.43%, further lifting sentiment. The end of shutdown fears helped fuel the risk-on tone, allowing the “Magnificent Seven” to rebound after last week’s tech-led pullback.

The communication services sector also saw broad strength, with Alphabet and Tesla pushing higher. Rumble surged 10% on a $100 million advertising deal with Tether and a $767 million acquisition of Northern Data. Viasat added 5% following a narrower-than-expected quarterly loss and a bullish upgrade from Raymond James.

Which Dow Stocks Are Supporting the Index?

NVIDIA and 3M contributed roughly 79 points to the Dow’s intraday gain. 3M climbed 2.4%, while other blue-chip names like Amazon (+1.63%), Caterpillar (+1.34%), and Microsoft also boosted the index. A $1 move in any Dow component equates to a 6.16-point shift, making these gains notable contributors to the broader advance.

What’s Moving Individual Stocks Outside Tech?

Penn Entertainment jumped more than 8% after CEO Jay Snowden disclosed a significant insider purchase. TreeHouse Foods rallied 23% following a $3 billion buyout by Investindustrial, representing an 18% premium.

On the downside, Metsera tumbled 15% after Pfizer outbid Novo Nordisk in a takeover battle. Six Flags dropped 7% after a downgrade from Morgan Stanley, citing weak pricing power and economic sensitivity among lower-income consumers.

What’s on Tap for Traders This Week?

Earnings will take center stage with reports from Dow components Cisco and Disney. Cisco is expected to highlight growth in AI data center infrastructure, while Disney faces scrutiny on its turnaround strategy, particularly around Disney+ and theme park revenues.

Nuclear startup Oklo and RocketLab will also report, drawing attention to the evolving energy and space sectors.

Meanwhile, political developments could shift market sentiment, with Congress under pressure to finalize shutdown negotiations. However, the delay of key economic data—like CPI, PPI, and retail sales—due to the shutdown adds uncertainty. Traders should remain focused on earnings and policy developments as the week unfolds.

Short-Term Outlook: Bullish

With tech rebounding, shutdown concerns easing, and AI optimism resurfacing, sentiment has turned constructive. While economic data may be delayed, earnings and legislative updates are likely to steer the market in the near term.

More Information in our Economic Calendar.