Apple jumped 4.3% to a record high, while Meta and Netflix each rose more than 2%. Alphabet added over 1%.
Semiconductor stocks also saw strong buying, with the Philadelphia Semiconductor Index gaining 2.2%. Micron advanced 3.6% to a record after Barclays raised its target. ON Semiconductor and KLA surged 5.6% and 4.8%, respectively.
Investor sentiment was further supported by the CBOE Volatility Index, which fell to its lowest level in over a week, indicating reduced market stress. Traders appear to be positioning for strong third-quarter earnings from the tech sector, particularly from the so-called “Magnificent Seven.”
Are Earnings Expectations Fueling Confidence?
S&P 500 companies are expected to post a 9.3% year-over-year profit gain for Q3, according to LSEG IBES. Investors are especially focused on results from Tesla, Netflix, Ford, and GM this week. These reports could reinforce—or challenge—the market’s pricing of high valuations.
Regional bank earnings will also be closely watched, given lingering credit stress concerns. Last week’s selloff, tied to the banking sector, appears to have triggered opportunistic buying in tech and industrials as the new week begins.
How Are Other Sectors Performing?
The industrials sector added nearly 1%, and the S&P Energy Index rose 0.3%. Boeing gained about 1% after receiving FAA approval to boost 737 MAX production. WeightWatchers soared 9.4% after announcing a weight-loss drug delivery partnership with Amazon.