The S&P 500 was up 0.6% in Monday afternoon trading, climbing to roughly 7,420 as technology shares powered the broad market higher. The Nasdaq Composite led the way with a 1.4% gain to 26,015, while the Dow Jones Industrial Average lagged with a marginal 0.08% dip to 50,827 — a classic tech-led, narrow-market session that’s become a familiar pattern this year.
The rally comes on the heels of last week’s strong close and builds on momentum from the May ISM Services PMI reading of 53.2, released Friday, which signaled continued expansion in the services sector. Markets are pricing in a roughly 75% probability that the Fed holds rates steady at next week’s FOMC meeting, according to CME FedWatch, with Governor Waller’s cautious remarks last week doing little to shift that consensus.
Sector-wise, technology was the clear standout. Consumer discretionary and communication services also traded higher, while energy, healthcare, and utilities lagged. The breadth was uneven — roughly 55% of S&P 500 components were in positive territory — but the heavyweight tech names did the heavy lifting.
The day’s action reinforces a market that’s willing to extend multiples on growth names while the macro data remains benign. The next real test comes with next week’s FOMC decision and the May CPI print on Thursday. Until then, the path of least resistance remains to the upside for the major indexes.
