Nasdaq 100 and S&P500: Tech Stocks Rise While Dow Lags on Financials Weakness

Wall Street Holds Steady at Midday as US-China Trade Talks Continue

U.S. stocks are trading narrowly mixed at mid-session Monday, with major indexes hovering near recent highs while traders monitor trade discussions between the U.S. and China. The S&P 500 and Nasdaq are slightly higher, while the Dow edges lower, as cautious optimism keeps risk appetite steady.

Is Tech Still Leading as Trade Talks Resume?

The tech-heavy Nasdaq, up 0.3%, continues to benefit from strength in megacaps. Nvidia is again lifting the sector, gaining over 1% intraday. The S&P 500, tracking near the 6,000 level, is on pace for a modest advance. Meanwhile, the Dow lags slightly, down 0.15%, weighed by softness in financials.

Trade negotiators from Washington and Beijing reconvened in London, revisiting last month’s preliminary agreement. Market participants expect a watered-down deal that could still ease tariff concerns. While not game-changing, any progress would reduce uncertainty and support equities near record levels.

Which Sectors and Stocks Are Moving the Needle?

Information technology is the strongest performing sector so far, up 0.4%, with most growth stocks in the green. Financials are the weakest, slipping 0.8%, dragging on the broader Dow.

On the corporate front, Warner Bros Discovery is leading the S&P 500, up 7.3%, after announcing plans to spin off its studios and streaming division. Robinhood is under pressure, falling 4.5%, after being left out of the latest S&P 500 rebalancing. Tesla is trading marginally lower following a downgrade from Baird, and McDonald’s shares are down 1.4% after a Morgan Stanley downgrade.

Is Institutional Buying Fueling the Index Rally?

Data from DataTrek suggests institutional investors are returning to equities after several months on the sidelines. This renewed interest is helping lift the S&P 500 toward its all-time high, last seen at 6,147.43 While this buying adds fuel to the rally, traders are watching for signs of overextension, particularly as sentiment approaches elevated levels.

Will Inflation Data Shift the Fed’s Rate Stance?

Markets are also bracing for key economic data later this week. May’s consumer price index, due Wednesday, will be closely watched for signs of building inflation. With the Fed expected to hold rates steady next week, a surprise in CPI or Thursday’s core PCE reading could influence rate path expectations—especially with tariffs possibly adding to price pressures.

Market Forecast

With the S&P 500 stable around the 6,000 level and tech driving gains, short-term sentiment remains positive. Progress on U.S.-China trade, even limited, could provide a further boost. However, upcoming inflation prints carry significant weight. A hot CPI or core PCE would likely increase rate hike expectations and temper equity momentum. Traders should track SPY’s action around 600 and watch for bond market reactions to Wednesday’s inflation data.

More Information in our Economic Calendar.