Tech Rally Lifts US Markets: Here's What You Need to Know

Wall Street’s having a solid day. The S&P 500 is up 1.21%, Nasdaq 100 jumping 2.01%—tech stocks are doing the heavy lifting after last week’s selloff on AI valuation concerns. Semiconductors are back in favor, with Broadcom and Western Digital both up over 8%.

Why the pop? Two things: First, Fed Governor Christopher Waller just signaled he’s pushing for a December rate cut due to labor market worries. That bumped the odds of a -25bp cut at the December 9-10 meeting to 72% (up from 30% last Thursday). Second, the Magnificent Seven tech stocks—Tesla up 6%, Alphabet up 4%—are carrying the market on their shoulders.

Bond markets are reacting too. The 10-year yield dropped 2.1 bps to 4.042% as rate-cut expectations rose, though Treasury supply this week ($211B in auctions) is capping gains.

What’s moving individual stocks?

Healthcare insurers are having a moment—Oscar Health soared 21% after reports the Trump admin is extending a two-year health insurance premium tax credit. Semiconductors and AI-chip makers are breadth leaders across the board.

On the flip side, defensive plays like Campbell’s and General Mills are selling off (down 2%+) as money rotates into risk. Some earnings-driven moves: Inspire Medical spiked 28% on a buy upgrade, while PureCycle Technologies fell 5% after a downgrade.

Economic calendar watch:

Retail sales, PPI, and consumer confidence reports drop this week. The market’s pricing in a solid earnings season—83% of S&P 500 companies beat estimates so far, with Q3 earnings up 14.6% vs. expectations of 7.2%.

Bottom line: Fed pivot hopes + strong earnings momentum = stocks rallying. But watch for inflation data later this week—that could reset expectations.