The S&P 500 and Nasdaq Composite closed notably higher on Monday. Chip-related shares including Broadcom led advances as investors positioned for artificial intelligence firms ahead of earnings reports. Broadcom gained after extending its custom chip supply agreement with Apple through 2031. Technology and semiconductor indices both recovered from prior losses.
Market observers highlighted that gains remain concentrated in select technology names. One fund manager described the advance as leaving out investors outside semiconductors and warned of vulnerability if interest rates stay elevated longer.
South Korea’s SK Hynix plans its Nasdaq debut this week, capitalizing on demand for AI chips. Microsoft shares declined after the company announced cuts affecting roughly 4,800 positions. Analysts viewed the reductions as an effort to manage capital spending amid uncertain returns.
The Institute for Supply Management reported its non-manufacturing index at 54.0. Preliminary figures showed the S&P 500 up 0.74 percent to 7,538.34, Nasdaq gaining 1.12 percent to 26,121.16, and the Dow rising 0.29 percent to 53,053.59. Year to date the S&P 500 has advanced about 10 percent while Nasdaq has added roughly 12 percent.
Major firms begin reporting second-quarter results soon, with analysts forecasting 24 percent aggregate earnings growth for S&P 500 companies and 65 percent for the technology sector. Delta Air Lines and PepsiCo are scheduled to report later this week. Traders currently assign a 25 percent probability to a quarter-point rate reduction at the July Federal Reserve meeting. Minutes from the prior policy session are due Wednesday.
