U.S. stocks extended their rally on Monday, building on last week's strong performance as investors returned from the Independence Day holiday weekend.
The S&P 500 rose 0.72% to close at 7,537.43, while the Nasdaq Composite gained 1.12% to finish at 26,121.16, driven by renewed strength in technology stocks. The Dow Jones Industrial Average added 155.84 points (0.29%), ending at a record 53,055.91 after also reaching a fresh intraday high.
Technology shares led the market higher, with the Technology Select Sector SPDR ETF (XLK) climbing nearly 2%. Western Digital surged 7%, Teradyne advanced 2.8%, Marvell Technology gained more than 1%, and Oracle rose 2.5%, reflecting renewed investor interest in the sector.
Monday's gains followed a strong week for major indexes. The Dow climbed nearly 2% last week, while the S&P 500 and Nasdaq advanced 1.8% and 2.1%, respectively.
Despite the broader market rally, semiconductor stocks had struggled recently as investors rotated into other sectors. The VanEck Semiconductor ETF (SMH) declined 3.2% last week, marking its second consecutive weekly loss. However, the ETF rebounded about 2% on Monday after delivering an impressive gain of more than 80% during the first half of the year.
Among individual stocks, Microsoft slipped nearly 1% after announcing plans to reduce its workforce by approximately 4,800 employees, or 2.1% of its staff. Meanwhile, Dell Technologies jumped more than 4% after receiving unexpected attention when President Donald Trump promoted the company's computers during an appearance at the White House following the opening bell.
Frequently Asked Questions
Why did U.S. stocks continue to rise on Monday?
Investors remained optimistic after last week's strong gains, while renewed buying in technology stocks helped push the major indexes higher.
Why is the Nasdaq outperforming the Dow?
The Nasdaq has a heavier weighting in technology companies. As chipmakers and other tech stocks rebounded, the index gained more than the Dow.
Why do semiconductor stocks matter so much to the market?
Semiconductor companies power AI, cloud computing, data centers, and consumer electronics. Their performance often influences the broader technology sector and major stock indexes.
Why did Microsoft shares fall despite a strong market?
Microsoft declined after announcing plans to cut around 4,800 jobs. While layoffs can improve efficiency over time, investors also assess what they signal about future business conditions.
