NEW YORK: The S&P 500 and the Nasdaq rose on Monday as chip stocks rebounded, with Broadcom advancing after extending its partnership with Apple, while investors looked ahead to the start of the second-quarter earnings season.
The Dow briefly hit a fresh intraday record early in the session before reversing course. The blue-chip index posted a record closing high on Thursday.
Broadcom climbed 4 percent after the chipmaker and Apple agreed to extend their deal through 2031 to develop and supply a range of custom chips.
The S&P 500 information technology sector rose 1.9 percent, while the Philadelphia SE Semiconductor index was up 3.8 percent, recovering after two straight sessions of losses.
South Korean chipmaker SK Hynix is set to debut on the Nasdaq later this week.
In economic data, the Institute for Supply Management said its non-manufacturing purchasing managers index edged down to 54.0 last month, matching expectations. At 12:17 p.m. ET, the Dow Jones Industrial Average fell 58.93 points, or 0.11 percent, to 52,841.14, the S&P 500 rose 52.99 points, or 0.71 percent, to 7,536.23, and the Nasdaq Composite gained 361.98 points, or 1.40 percent, to 26,194.77.
The three major indexes each rose about 2 percent last week, even as semiconductor shares remained volatile after driving much of this year’s market rally.
Markets have taken the recent strength in healthcare, industrials and financials as a sign the rally may be broadening beyond the chip and AI trade. “The everything trade is still alive and well. I do think sectors that were left for dead during the Iran war are going to continue to outperform and get bids,” said Thomas Hayes, chairman at Great Hill Capital LLC.
As the second-quarter earnings gather pace later this month, they will pose another test for markets. Delta Air Lines and PepsiCo are expected to report results later in the week.
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