Wall Street closes higher, S&P 500 hits record as tech titans surge

US equities began the week on a strong note, with major benchmarks closing higher on Monday as investors leaned on technology heavyweights to extend the rally. The S&P 500 added 0.3 per cent to finish at a fresh record, while the Nasdaq Composite climbed 0.8 per cent to an intraday peak of 21,868, propelled by enthusiasm around artificial intelligence and semiconductor stocks.

The Dow Jones Industrial Average edged up 0.2 per cent, gaining 67 points in a more subdued performance. According to The Economic Times, the positive tone reflected investor optimism about tech-driven growth, index reshuffling, and a supportive bond market, with the 10-year Treasury yield slipping to 4.07 per cent.

Tech titans lead the charge

Technology stocks once again played the role of market engine, with several of the industry’s largest names outpacing the broader indexes. Alphabet rose more than 2 per cent, benefitting from AI-driven momentum, while Meta Platforms, Nvidia and Amazon each advanced at least 1 per cent. Microsoft added 0.6 per cent, helping push the Nasdaq-100 to the forefront of sector gains. Semiconductor names were particularly strong, with Broadcom climbing 4.5 per cent and Lam Research up 3 per cent, reversing recent weakness. The rally reflected investors’ conviction that big tech, powered by artificial intelligence and cloud infrastructure demand, remains central to Wall Street’s advance.

Apple lags after “Awe Dropping” event

Apple was the notable outlier, retreating 1.5 per cent despite unveiling its much-anticipated iPhone 17 lineup at its “Awe Dropping” event. The new flagship device, the iPhone Air, features an “impossibly thin” design, improved durability, and the A19 Pro chip, which Apple executives claimed brings “MacBook Pro levels of compute” to a handheld device. The company also revealed longer-lasting iPhone Pro models, AirPods Pro 3 with live language translation, and an Apple Watch equipped with a blood pressure monitor, pending regulatory approval in more than 150 countries.

CEO Tim Cook described the iPhone Air as the biggest leap yet for the product line, priced at $999. Apple maintained stability in its pricing strategy despite tariffs, keeping the entry-level iPhone 17 at $799 while doubling standard storage to 256 GB. Analysts viewed this restraint as a calculated move to reinforce Apple’s ecosystem rather than trigger sticker shock among consumers.

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Nevertheless, investors responded coolly. The stock oscillated within a $5.4 trading range before closing at $234.4, down from its prior session. Market participants noted that Apple shares often struggle immediately after product unveilings, with recoveries tending to emerge in the weeks that follow. Yet Monday’s decline highlighted how Apple trailed not only the S&P 500 and Nasdaq but also its mega-cap peers in the Dow.

Broader market dynamics

Outside the mega-cap tech space, corporate moves and sector shifts shaped Monday’s trading. Robinhood surged nearly 15 per cent after news that it would join the S&P 500 later this month, marking a symbolic transition from a meme-stock platform to a credible fintech player with growing revenue streams in crypto, options and interest income. AppLovin also soared 10 per cent on strong year-to-date momentum and the prospect of index inclusion. Emcor rose over 2 per cent as it prepared to enter the S&P, replacing solar firm Enphase Energy, which slid 3 per cent.

In contrast, telecom stocks stumbled. T-Mobile sank 5.6 per cent, Verizon fell 2 per cent and AT&T dropped 3 per cent as the sector grappled with regulatory pressure and spectrum sales linked to SpaceX. The weakness highlighted the uneven performance across industries even as the broader market trended upward.

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Tesla and the technical picture

Tesla offered another highlight for traders, breaking through a critical buy point at $355.39. The stock ended the session at $349.37, up 3.6 per cent, with technical indicators such as the Relative Strength Index and MACD signaling bullish momentum. Analysts interpreted the move as a potential breakout, reinforcing Tesla’s renewed leadership in growth-oriented portfolios.

Meanwhile, the Russell 2000 small-cap index fell 0.3 per cent, slightly underperforming but holding above key short-term averages, suggesting resilience despite investor preference for larger, AI-exposed companies.

Oil, energy and geopolitics

Energy markets added to the day’s complexity. West Texas Intermediate crude rose 1.5 per cent to trade near $62.15 per barrel, lifted by renewed geopolitical tension after Russian strikes in Ukraine stoked fears of tighter sanctions. Infrastructure stock Emcor outperformed, while clean energy names such as Enphase lagged. The divergence reflected how geopolitics continues to influence commodity prices and sector performance.

Eyes on the Fed and inflation

Attention now shifts to economic data, particularly August’s consumer and producer price indexes. Last week’s weak jobs report bolstered expectations that the Federal Reserve will cut rates, with markets assigning a two-thirds probability that the benchmark will finish the year between 3.5 and 3.75 per cent. Debate remains over whether the Fed might opt for a larger 50-basis-point “catch-up” cut or a series of smaller reductions. Inflation readings, alongside bond market signals, will likely dictate the path of equities through September.

Tech leads, Apple trails

The day’s market action showed the dominant role of technology in driving Wall Street higher. While Alphabet, Meta, Nvidia and Amazon surged, Apple’s stumble after its product showcase demonstrated that not every tech titan shares equally in investor enthusiasm. The juxtaposition highlighted both the promise and the scrutiny facing Silicon Valley’s giants at a time when AI excitement, index reshuffling and monetary policy shifts continue to shape sentiment.

As traders brace for inflation data and Federal Reserve clarity, Apple’s muted reception contrasts with the exuberance lifting its peers. For now, Wall Street’s rally rests firmly on the shoulders of big tech, but the odd one out may need to prove its newest devices can match the hype with real-world demand.