Five of the Magnificent Seven rise as the Nasdaq Composite gains 1.05%; the Dow posts a more modest advance.
U.S. stocks closed higher to start the new trading week, with the Nasdaq Composite leading the way. The S&P 500 and Nasdaq 100 also posted solid gains, while the Dow lagged but still finished in positive territory.
Optimism about corporate earnings and continued interest in large technology companies helped support the market. Friday’s weaker jobs report also reduced expectations for another Federal Reserve rate hike this month. Nvidia and Microsoft were among the stocks supporting Monday’s advance.
However, the gains were selective. Apple and Amazon slipped, while Intel and several AI infrastructure names moved lower. Buyers were making a play in the broader market, but that did not translate into gains for every technology stock.
U.S. stock closing levels
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Dow Industrial Average: Up 91.01 points, or 0.18%, to 51,273.12.
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S&P 500: Up 51.25 points, or 0.66%, to 7,773.96.
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Nasdaq Composite: Up 286.45 points, or 1.05%, to 27,477.31.
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Russell 2000: Up 14.24 points, or 0.50%, to 2,847.14.
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Nasdaq 100: Up 268.51 points, or 0.87%, to 31,076.44.
The Russell 2000 participated in the advance, but its gain was less than half the Nasdaq Composite’s percentage rise. Large technology shares remained the stronger area of the market.
Earnings optimism meets interest-rate pressure
Investors continued to look ahead to earnings season, but the bond market remained a potential headwind. Treasury yields stayed elevated even after Friday’s softer employment report. Higher borrowing costs can pressure corporate margins and make investors less willing to pay higher valuations for stocks.
That leaves traders weighing earnings growth against interest-rate risk. Monday’s gains suggest buyers were willing to look past that risk for now. The question is whether companies can deliver results strong enough to sustain that confidence.
The Fed minutes on Wednesday will provide another opportunity to assess policymakers’ thinking on inflation and interest rates.
Magnificent Seven: Five higher, two lower
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Tesla: Up 2.18% to $378.69.
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Nvidia: Up 2.12% to $238.90.
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Meta Platforms: Up 1.90% to $741.90.
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Microsoft: Up 1.48% to $525.18.
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Alphabet: Up 0.86% to $346.47.
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Amazon: Down 0.05% to $251.40.
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Apple: Down 0.24% to $332.89.
Tesla and Nvidia led the group with Nvidia closing at a new record level.
Microsoft and Meta also outperformed the broader S&P 500, while Apple and Amazon sat out the rally.
Other notable winners
The supplied stock list showed gains across biotechnology, storage, software, medical technology and materials:
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Moderna: Up 6.95% to $203.21.
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Western Digital: Up 6.35% to $441.64.
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Shopify: Up 5.76% to $160.11.
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AppLovin: Up 5.13% to $281.97.
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Alibaba: Up 4.68% to $110.80.
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Intuitive Surgical: Up 3.71% to $406.48.
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Alcoa: Up 3.69% to $43.50.
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Astera Labs: Up 3.43% to $362.34.
Notable losers
There were meaningful declines despite the higher index closes:
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Lennar: Down 6.73% to $74.44.
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Chipotle Mexican Grill: Down 4.67% to $30.85.
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Nebius Group: Down 4.22% to $232.57.
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Bristol Myers Squibb: Down 3.84% to $58.80.
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Merck: Down 3.30% to $139.54.
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Corning: Down 2.93% to $159.38.
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Credo Technology: Down 2.82% to $212.48.
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Intel: Down 2.63% to $116.19.
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CoreWeave: Down 2.48% to $87.40.
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United Airlines: Down 2.23% to $110.00.
The technology split stands out. Nvidia and Astera Labs advanced, while Intel, Credo, Nebius and CoreWeave declined. Traders continued to differentiate between individual companies within the broader technology theme.
European stocks: France underperforms
European markets finished mostly higher, with France the exception:
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German DAX: Up 0.09% to 25,254.22.
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France CAC 40: Down 0.80% to 7,834.11.
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UK FTSE 100: Up 0.34% to 10,497.95.
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Spain IBEX 35: Up 1.12% to 19,299.69.
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Italy FTSE MIB: Up 0.66% to 50,818.39.
France remained a pressure point as investors questioned whether a deeply divided parliament can deliver credible deficit reductions ahead of the 2027 presidential election. Last week’s budget proposal failed to reassure bond investors, with concerns that election politics will make spending restraint harder to achieve. Marine Le Pen’s potential victory adds uncertainty over the future fiscal direction.
That uncertainty has pushed investors to demand more compensation for holding French debt. The French 10-year yield rose toward 4.92% early Monday before easing to around 4.86%, down roughly 1 basis point in a later update. Yields remain elevated after reaching nearly 5% on Friday, when the premium over German debt widened to its highest since 2011.
For traders, the concern is whether France’s fiscal problems spread into other European bond markets. Higher borrowing costs can pressure businesses and stock valuations, while the political uncertainty adds another headwind for the euro. Spain added to those concerns after Prime Minister Pedro Sánchez called a November 29 snap election following parliamentary defeats over housing measures.
Trader education: A rising index does not lift every stock
Monday offers a useful lesson for newer traders. An index reflects the combined performance of its components, and larger companies can have a significant influence on its direction. The Nasdaq can rise more than 1% while individual technology stocks fall sharply.
Use the broader market to understand the backdrop, then use the individual stock’s technical levels to define the trade. Is the price above or below its key moving averages? Is resistance holding? Has a break attracted follow-through?
A strong market can help the buyers, but each stock still needs to prove itself. Define your risk, limit your risk and accept your risk.
