Nasdaq 100 and S&P500: Tech Stocks Surge as Trade Truce Lifts US Indices Today

Tech and Trade Truce Power Stocks Higher, but Defensive Sectors Lag

At 13:47 GMT, U.S. stocks were trading at fresh record highs as early optimism over a potential U.S.-China trade truce lifted investor sentiment. The Dow Jones Industrial Average rose 205 points, or 0.44%, while the S&P 500 climbed 0.87%. The Nasdaq outperformed, jumping 1.47%, led by strength in semiconductor names amid signs of easing tensions between President Trump and Chinese President Xi.

Markets responded favorably to weekend developments at the ASEAN Summit, where Treasury Secretary Scott Bessent signaled a framework is in place for a trade agreement. This includes potential delays in Chinese rare earth export controls, the scrapping of 100% tariffs previously scheduled for November, and resumed soybean imports by China.

Which sectors led the market rally?

Technology and consumer discretionary stocks drove Monday’s gains. The Technology Select Sector Index (XLK) added 1.44%, with chipmakers Nvidia and Broadcom each rising more than 2%.

Consumer discretionary names, including Tesla and Lululemon, also performed well. Lululemon rose 3.3% after announcing an NFL partnership.

The Communication Services sector climbed 1.58%, supported by mega-cap names like Apple, which approached a $4 trillion valuation.

What sectors lagged despite broader gains?

Defensive groups underperformed. Utilities fell 0.37%, consumer staples lost 0.41%, and healthcare dropped 0.35%. Materials also edged lower by 0.1%, while real estate slipped 0.27%. Gold miners fell sharply as risk appetite improved and gold prices declined. Newmont, Hecla Mining, and Coeur Mining all lost around 5%.

Which companies made standout moves?

Avidity Biosciences surged nearly 44% after Novartis agreed to acquire it for $12 billion. Janus Henderson jumped 14% on buyout speculation involving Trian Fund Management. Keurig Dr Pepper gained 8.6% after a revenue beat and full-year guidance hike. Five Below rose 3.8% on a JPMorgan upgrade, while Carter’s fell more than 7% on weak earnings and layoff plans.

Chipmakers were in focus, with AMD, Nvidia, and Broadcom all gaining over 2% as expectations grew for a resolution to U.S.-China trade tensions this week.

What’s the market outlook from here?

Traders remain focused on the upcoming Trump-Xi meeting, where a formal deal could be reached. Markets are also pricing in a potential Fed rate cut at Wednesday’s decision. With earnings due from Alphabet, Amazon, Apple, Meta, and Microsoft this week, tech could remain in the driver’s seat, keeping sentiment bullish near term.

More Information in our Economic Calendar.