U.S. equities advanced on Monday, with the Dow Jones Industrial Average climbing 83 points to a new record high, as a rebound in semiconductor shares lifted market sentiment. The S&P 500 rose 0.48%, and the Nasdaq Composite gained 0.87%, building on last week's approximately 2% gains for the major indexes.
The rally in technology stocks was led by chipmakers recovering from recent weakness. Broadcom surged 5.8% after announcing an expanded partnership with Apple to develop custom chips through 2031. Memory chip stocks also rebounded sharply: Western Digital jumped 8.6%, Seagate advanced 5.7%, and Micron Technology added 1.7%. The Technology Select Sector SPDR ETF rose over 1%, supported by gains in Teradyne (5.22%), Marvell Technology (2.88%), and Oracle (1.28%).
This rebound follows two consecutive weekly declines for the VanEck Semiconductor ETF, which fell 3.2% last week as investors trimmed exposure after the sector's strong year-to-date performance. The rotation out of semiconductors had fueled gains in healthcare, industrials, and financials, broadening the market's advance.
Investor attention is now turning to the second-quarter earnings season, which kicks into higher gear this week. Delta Air Lines and PepsiCo are among the companies scheduled to report. According to LSEG data, S&P 500 companies are expected to post year-over-year earnings growth of 24.4% in Q2. The earnings outlook comes amid ongoing debate about valuations, as discussed in our article on AI-Driven Earnings Surge Sparks Debate Over US Stock Valuations.
Markets are also awaiting the release of the Federal Reserve's June meeting minutes on Wednesday, the first chaired by Kevin Warsh. Rate hike expectations have eased following last week's weaker-than-expected U.S. jobs report. CME FedWatch data now shows a 24% probability of a 25-basis-point rate increase at the July meeting, down from about 30% a week earlier. Expectations for a September hike have also moderated. Fed Governor Christopher Waller is scheduled to speak later Monday, and the ISM services survey is expected to show a modest easing to a still-expansionary reading of 54.0.
Outside the U.S., global markets were mixed. Europe's STOXX 600 slipped 0.5%, while Asia-Pacific indexes ended with varied results. Japan's Nikkei 225 was little changed, but the broader Topix rose 0.92%. South Korea's Kospi fell 0.46%, and the Kosdaq declined 2.46%. Australia's S&P/ASX 200 edged down 0.15%, China's CSI 300 was flat, and Hong Kong's Hang Seng gained 0.81%. The cautious tone overseas reflects investors balancing corporate earnings expectations, monetary policy signals, and ongoing sector rotation following Wall Street's strong performance last week.
In other corporate news, South Korean memory chipmaker SK Hynix began trading its U.S. listing on Monday in a deal expected to raise about $28 billion. SpaceX shares also edged 1.6% higher ahead of the company's planned inclusion in the Nasdaq-100 on Tuesday.
For broader context on recent market movements, see our coverage of Dow Rises 256 Points as Weak June Jobs Data Dims Fed Rate Hike Prospects and European Stocks Hit New Highs: STOXX 600, DAX Record Weekly Gains on Rate Optimism.
This article is for informational purposes only and does not constitute financial advice.
