Gains in several large-cap technology stocks drove the S&P 500 close to its all-time high, as investors flocked to familiar artificial intelligence names amid mounting bond market and political concerns.
The S&P 500 rose 0.7% at the close, with NVIDIA Corp and Microsoft Corp accounting for most of Monday's advance, even as the 10-year US Treasury yield surged to its highest level in more than two decades. The index has gained roughly 14% so far this year. Materials, communication services and healthcare sectors all moved higher. The Nasdaq 100 added 0.9%, touching a record high for a second consecutive trading session.
"The S&P 500's performance this year can be summed up in one word: resilience. The latest leg up was driven by the same old playbook, namely heavyweight stocks pulling the entire index higher," said Joe Gilbert, portfolio manager at Integrity Asset Management.
Market breadth remains one of investors' biggest concerns. The share of stocks trading above their 10-day, 50-day and 200-day moving averages has fallen to its lowest level since March.
"We need to see interest rates and oil prices come down, but that is not happening right now, and market internals are deteriorating," said Craig Johnson, chief market technician at Piper Sandler. "This is going to become a headwind for the market."
Strategists at Citigroup Inc and JPMorgan Chase & Co expect strong corporate earnings to continue supporting equities despite bond market volatility. After a weaker-than-expected jobs report lowered expectations for Federal Reserve rate hikes, RBC strategists turned more positive on US small-cap stocks.
Taiwan Semiconductor Manufacturing Co Ltd ADRs rose 2.8% after the company held discussions with Elon Musk's Terafab, fueling expectations of a potential collaboration between the two parties.
At the close, the S&P 500 gained 0.7% to 7,773.95; the Dow Jones Industrial Average rose 0.2% to 51,267.9; the Nasdaq Composite climbed 1.1% to 27,477.31; the Nasdaq 100 advanced 0.9% to 31,076.44; and the Russell 2000 added 0.5% to 2,847.136.