S&P500 and Dow Jones: Energy and Tech Lead Gains in US Stock Market Rebalancing

Tech and Energy Cushion Index Losses as Policy and Earnings Set the Tone

U.S. equities found firmer footing Thursday, recouping part of Wednesday’s pullback as gains in large-cap tech and energy stabilized the tape.

The S&P 500 rose 0.28% by 14:26 GMT, while the Nasdaq Composite added 0.48%, helped by strength in Amazon, Broadcom, and Meta. The Dow Jones Industrial Average was flat, off just 7.70 points.

Better-than-expected corporate earnings and rising oil prices helped anchor sentiment, even as policy headlines continued to stir investor focus.

What’s driving tech and energy higher?

Technology and energy led sector performance. The tech bid was underpinned by continued enthusiasm around AI and high-speed networking, with Monolithic Power (+6.91%) and Arista Networks (+4.15%) among top movers. Communication Services also caught a tailwind from Meta’s advance.

Energy outperformed on renewed geopolitical risk, as U.S. sanctions on Russian oil giants Rosneft and Lukoil raised crude supply concerns. Valero (+6.49%) and APA Corp (+5.70%) were standouts, while midstream names like Kinder Morgan lagged on less direct exposure to oil pricing.

How are earnings shaping sentiment across sectors?

Earnings continued to provide core support, with FactSet noting over 75% of S&P 500 companies have beaten estimates this season. Industrials were mixed, buoyed by Honeywell (+6.51%) and Dover (+4.97%), though names like Roper (-6.96%) and Textron (-3.98%) weighed on the group.

Materials found momentum through Dow Inc (+8.73%) and Albemarle (+4.37%) on earnings strength and energy-related pricing tailwinds.

Which sectors are struggling to keep pace?

Rate-sensitive and defensive sectors underperformed. Real Estate (-0.63%) and Utilities (-0.08%) struggled to attract flows as investors rotated back to cyclicals.

Health Care performance was split—West Pharmaceutical soared 11.80% on strong results, but heavy declines in Molina (-20.00%) and Centene (-6.62%) pulled the group lower on managed care pressure.

In Consumer Discretionary, Las Vegas Sands (+11.36%) and Wynn (+4.26%) climbed on improved China sentiment following Trump’s comments about a scheduled meeting with President Xi, while Tesla slipped 3.30% after a mixed report.

What are traders watching next?

Short-term market tone remains cautiously bullish. Supportive earnings breadth and sector rotation into growth names suggest dip-buying interest remains intact.

Traders will be closely monitoring developments on U.S. export controls tied to China ahead of the November 1 deadline, as well as any fallout from the Russian sanctions on oil markets. Upcoming mega-cap earnings remain a critical catalyst for directional bias.

More Information in our Economic Calendar.