The major averages moved in a relatively stable range in their first session back from the long holiday weekend, with the Nasdaq Composite (+1.1%) and S&P 500 (+0.7%) buoyed by continued strength across mega-cap stocks and a rebound in semiconductor names today. That momentum helped the S&P 500 close above the 7,500 mark for the first time since June 18. The DJIA (+0.3%) notched a more modest gain as there was some rotational selling across more defensive pockets of the market amid the outperformance in tech, though it was enough for the index to secure all-time highs and close above the 53,000 mark for the first time.

Today's rebound across semiconductor stocks was widely attributed to investors buying last week's pullback rather than any single industry-specific catalyst. There were still a few news items of note, with Advanced Micro Devices (AMD 552.05, +34.23, +6.61%) outperforming after Goldman Sachs reiterated its Buy rating on the stock and increased its target price to $640 from $450, while Broadcom (AVGO 373.90, +13.45, +3.73%) and Apple (AAPL 312.66, +4.03, +1.31%) agreed to expand their long-standing technology collaboration through 2031. The PHLX Semiconductor Index advanced 2.2%, helping the top-weighted information technology sector (+1.3%) finish as one of the top-performing S&P 500 sectors.

Only the communication services sector (+1.6%) notched a wider gain, with Meta Platforms (META 600.29, +17.39, +2.98%) and Alphabet (GOOG 364.90, +8.72, +2.45%) charting session highs this afternoon to offset broader weakness in the sector.

Tesla (TSLA 419.77, +26.32, +6.69%) was another mega-cap standout, reclaiming nearly all of Friday's loss and pushing the consumer discretionary sector (+1.0%) higher despite weakness across most of the sector. Specialty stores such as O'Reilly Auto (ORLY 84.24, -6.01, -6.66%) and AutoZone (AZO 2957.71, -201.57, -6.38%) were the worst-performing S&P 500 components today.

In total, the Vanguard Mega Cap Growth ETF gained 1.5%, and the market-weighted S&P 500 (+0.7%) outperformed the S&P 500 Equal Weighted Index (flat).

Performance across other cyclical sectors was mixed, with the financials (+0.9%) and industrials (+0.8%) sectors posting solid gains while the energy (-0.3%) and materials (-0.2%) sectors faced modest retreats.

Meanwhile, the defensive health care (+1.2%), utilities (-1.1%), and consumer staples (-0.9%) sectors lagged as investors rotated back into mega-cap tech and semiconductor names today. The real estate sector (-0.9%) faced a similar retreat.

Outside the S&P 500, the Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.4%) notched decent gains after underperforming last week.

All told, the stock market returned from the holiday weekend on solid footing, with continued strength across technology helping the major averages push through several notable round-number milestones. While those gains came at the expense of some more defensive areas of the market, overall breadth remained decidedly positive, with analysts characterizing the rotation beneath the surface as a healthy feature of the ongoing bull market.

U.S. Treasuries began the week on a mixed, but largely quiet note, with the long bond recording its fourth consecutive loss while the 5-year note yield and shorter tenors climbed for the second day in a row. The 2-year note yield settled down two basis points to 4.12%, and the 10-year note yield settled down one basis point to 4.48%.

• Russell 2000: +21.3% YTD
• S&P Mid Cap 400: +15.5% YTD
• Nasdaq Composite: +12.4% YTD
• DJIA: +10.4% YTD
• S&P 500: +10.1% YTD

Reviewing today's data:

• June S&P Global U.S. Services PMI - Final 51.2; Prior 51.3
• June ISM Non-Manufacturing Index 54.0% (Briefing.com consensus 54.2%); Prior 54.5%
  • The key takeaway from the report is that activity in the services sector is still running at a good pace despite ongoing price pressures. The June reading was 0.9 percentage points above the 12-month average of 53.1%.