O S&P 500 serious her best daily performance since June 5, as technology stocks rebounded after the index’s worst weekly losses since April.
The S&P 500 rose 1.1% to 5,564.41, its best daily performance since June 5, while the Nasdaq ended at 18,007.57, up 1.6%.
The Dow Jones gained 127.91 points, or 0.3%, to close at 40,415.44.
Nvidia rose 4.8%, recovering from last week’s 8% drop.
Other big tech companies, including Meta Platforms and Alphabet, gained more than 2%.
CrowdStrike was the worst-performing stock in the S&P 500, plunging 13.5% and bringing its losses in recent days to 18%.
Technology stocks have been under pressure over the past week as investors have shifted to smaller-cap stocks, sending the S&P 500 down 2% last week. The Nasdaq has fallen more than 3% in the same period.
Despite strong gains in the technology sector, small-cap stocks maintained their momentum. The Russell 2000 rose 1%, continuing last week’s 6% gain.
Traders are certainly keeping a close eye on US political developments after President Joe Biden withdrew from the race on Sunday and endorsed Kamala Harris. After Biden’s disastrous debate in June, many analysts are now seeing a victory for Republican Donald Trump.
Also on investors’ radar are earnings and moves by the Federal Reserve, with investors giving a 93% chance of a rate cut by the Federal Reserve at its September meeting.