Key Takeaways:
- S&P 500 rose 0.5% to intraday highs, extending its record run
- Nasdaq 100 gained nearly 1%, led by semiconductor stocks
- Market breadth improved with 57% of stocks above 200-day moving average
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S&P 500, Nasdaq 100 hit session highs as AI rally broadens
The S&P 500 rose 0.5% and the Nasdaq 100 gained nearly 1% on Monday, pushing both indexes to fresh intraday highs as AI-driven demand lifted semiconductor stocks and market participation widened beyond mega-cap technology names.
"The rally is broadening beyond just the mega-cap tech names, which is a healthy sign for the sustainability of this bull market," said Terry Sandven, chief equity strategist at U.S. Bank Asset Management Group.
The S&P 500 has climbed 16.1% over the past two months, the largest two-month gain since May 2020, according to Dow Jones Market Data. The information-technology sector led with a 15.9% advance in May, though the equal-weighted S&P 500 has outperformed its market-cap-weighted counterpart for two consecutive weeks — a signal that smaller companies are catching up. The Russell 2000 is up 17.6% year to date, outpacing the S&P 500's 10.7% gain.
The rally comes as first-quarter earnings grew 29% year over year, the fastest pace in nearly five years, according to LSEG data. Investors now turn to May employment data due Friday, which will test whether the economy can sustain the Goldilocks backdrop of stable inflation, flat interest rates and strong corporate profits.
About 57.2% of S&P 500 stocks are trading above their 200-day moving average, up from below 50% earlier this month, according to Dow Jones Market Data. The Cboe Volatility Index held near 15.3, reflecting subdued hedging demand even as indexes trade at record levels.
The 10-year U.S. Treasury yield stood at 4.47%, while the U.S. dollar edged lower, providing additional support for equities. Crude oil rose 2.5% to $89.58 a barrel, and gold slipped 0.9% to $4,553.40 an ounce.
Dell Technologies surged 32.8% on Friday after reporting profits that beat estimates and raising its outlook, citing strong demand for AI computing. Micron Technology earlier joined the $1 trillion market-cap club after UBS raised its price target to $1,625 from $535, underscoring the depth of AI-driven demand across the semiconductor supply chain.
This article is for informational purposes only and does not constitute investment advice.
[1] How major US stock indexes fared Friday 5/29/2026 - The Washington Post[2] It’s not just tech stocks: The broad-based strength of the market right now gives investors reason to stay the course - MarketWatch[3] My trading game plan revealed - 06/01/2026: Sector rotation sparks chip euphoria, Intel selloff and gold breakout risk[4] S&P 500, Nasdaq hit record closing highs on AI optimism, Micron joins $1...
