Tech giants and AI trade boost US stocks to new highs

US stocks reached new record highs on Monday, with the S&P 500 climbing 0.5%, the Nasdaq 100 rising 0.8%, and the Russell 2000 advancing 0.3%. Leading the charge were the Magnificent 7 and other companies in the AI ecosystem, with the exception of Nvidia, which helped propel the benchmarks to another day of all-time highs.

The top-performing sectors in the S&P 500 included communications services, technology, and consumer discretionary, where the Magnificent 7 companies reside. On the other hand, defensive sectors like consumer staples and healthcare lagged behind in performance.

Some notable movers on the day included Seagate Technology, which surged 7.8% after Bank of America increased its price target on the stock. Shares of Western Digital also saw a 4.8% gain. However, Corteva and J.M. Smucker experienced declines of 5.7% and 5.1%, respectively.

Alphabet saw a 4.5% increase in its stock price, pushing its market cap above $3 trillion, making it the fourth company to achieve this milestone, alongside Nvidia, Microsoft, and Apple. Tesla jumped 3.6% after CEO Elon Musk revealed a substantial purchase of over $1 billion worth of shares.

CoreWeave saw a 7.6% climb following an agreement with Nvidia to purchase its unused cloud computing capacity through April 2032. Intel rose 2.9% after reducing its full-year operating expense forecast, while IonQ shares gained 6.3% after receiving analyst price target upgrades post its Analyst Day event.

Chinese electric vehicle maker Nio jumped 4.2% after announcing the commencement of deliveries for its ES8 SUV, set to rival Tesla’s Model Y starting this weekend. Joby Aviation and Archer Aviation also saw gains after the announcement of a new FAA pilot program to accelerate the development of “advanced air mobility.”

Novo Nordisk edged up 1.4% following approval from European regulators for its diabetes pill for cardiovascular benefits. Snap and Meta also closed higher after speculation from President Trump on Truth Social regarding a possible TikTok deal.

On the flip side, Alaska Air dropped 6.7% after projecting that Q3 profits might be on the lower end of expectations. Hims & Hers slipped 2.8% following criticism from FDA Commissioner Marty Makary regarding its marketing tactics during a Super Bowl ad earlier this year.