The tech-heavy Nasdaq Composite closed at 21,798.70, up 98.31 points, or 0.5%. This marks the highest recorded close of the index in its historical data. The S&P 500 increased by 13.65 points, representing a 0.2% rise, concluding the session at 6,495.15. Six of the 11 broad sectors of the benchmark index finished the day with gains. The Technology Select Sector SPDR advanced 0.8%, the Consumer Discretionary Select Sector SPDR increased by 0.4%, and the Industrials Select Sector SPDR rose 0.2%. In contrast, the Utilities Select Sector SPDR experienced a decline of 1%.

The CBOE Volatility Index (VIX), often referred to as the fear gauge, experienced a decline of 0.5%, settling at 15.11. On Monday, trading volume reached 16.2 billion shares, surpassing the 20-session average of 16.1 billion shares. Investor sentiment is optimistic as expectations grow for several rate reductions in 2025. The rally comes in the wake of a jobs report released on Friday that fell short of expectations, highlighting indications of a cooling labor market. Declining Treasury yields reinforced the belief that monetary policy may soon pivot towards rate reductions. The Nasdaq reached an unprecedented high, with both the Dow and the S&P 500 also experiencing gains, buoyed by positive sentiment regarding reduced financing costs. A significant factor contributing to this optimism. Which assesses market-based probabilities of Federal Reserve actions.

By Monday, the tool indicated a high probability that policymakers would implement a cut in September, assigning approximately a two-thirds likelihood of a 25 basis points reduction and even allowing for the potential of additional cuts later in the year. The positive sentiment permeated various sectors, propelling overall equity indices, with technology stocks at the forefront of this movement. Market participants are increasingly directing their attention towards forthcoming inflation metrics and supplementary labor statistics, which may influence the Federal Reserve’s path forward. Late last week, Broadcom Inc. reported third-quarter fiscal 2025 earnings of $1.69 per share, surpassing the Zacks Consensus Estimate of $1.66. This stands in contrast to earnings of $1.24 per share from the previous year. The company reported revenues of $15.95 billion for the quarter, exceeding the Zacks Consensus Estimate by 0.78%. This stands in contrast to revenues of $13.07 billion from the same period last year.

Broadcom reported impressive quarterly results, driven by a significant increase in AI chip revenues and a substantial $10 billion order, leading to a stock increase of approximately 3.2% on Monday. Broadcom’s ascent as a leading gainer in the S&P 500 highlights the prevailing confidence in AI-driven growth, creating a ripple effect throughout the semiconductor sector. The earnings surpassing expectations bolstered investor confidence in the demand for AI infrastructure, contributing to an uplift in sentiment within the technology sector and underscoring Broadcom’s increasing role in shaping market anticipations.