U.S. equities closed higher Monday, led by gains in technology stocks, as the Dow Jones Industrial Average climbed to fresh record levels and investors looked ahead to key economic data and a new round of earnings after a volatile prior week.
The S&P 500 extended its rebound for a second consecutive session, rising 0.47% to finish at 6,964.82. The Dow added 20.20 points, or 0.04%, ending at 50,135.87 after setting new intraday and closing all-time highs. The Nasdaq Composite outperformed, jumping 0.9% to close at 23,238.67.
Chipmakers once again led the advance, with Nvidia gaining 2.5% and Broadcom climbing 3.3%. Oracle surged 9.6% after D.A. Davidson upgraded the stock to “buy” from “neutral,” citing optimism around OpenAI and broader AI-related demand.
Monday’s gains followed a strong rebound late last week, when the Dow surpassed the 50,000 mark for the first time, recovering from earlier losses driven by a sharp sell-off in software and other technology stocks. Bitcoin also saw heavy selling during the risk-off move before paring some losses.
Despite the recent bounce, investors remain cautious, with the possibility of renewed sector rotation depending on incoming earnings results. Coca-Cola and Ford Motor are among the companies scheduled to report on Tuesday.
Markets are also focused on the delayed January employment report from the Bureau of Labor Statistics, due Wednesday after being postponed by the partial government shutdown. The release follows a weak ADP report showing private payrolls rose by just 22,000 in January. Economists surveyed by Dow Jones expect the official jobs data to show an increase of 55,000.
Attention will then turn to the January consumer price index on Friday, with consensus estimates pointing to a 2.5% annual inflation rate.
Frequently Asked Questions
Why did the S&P 500 and Nasdaq outperform the Dow?
Tech stocks led the gains, with strong moves in AI-related names like Nvidia, Broadcom, and Oracle driving the S&P 500 and Nasdaq higher, while the Dow saw more modest upside.
What pushed the Dow Jones to a new record high?
The Dow benefited from steady buying in large-cap industrial and consumer names, along with improved risk sentiment following last week’s rebound above the 50,000 level.
Which economic data are markets watching next?
Investors are focused on the delayed January jobs report and the upcoming CPI inflation data, both of which could influence rate expectations and market direction.
Could the recent tech rally face another pullback?
Yes. While momentum remains strong, upcoming earnings and macro data could trigger renewed sector rotation or profit-taking, especially in high-valuation tech stocks.
