The major averages started the new week with solid gains as investors rotated back into the market's largest technology names following last week's broadening in market leadership. The S&P 500 (+1.2%), Nasdaq Composite (+2.1%), and DJIA (+0.6%) all finished higher, with the Vanguard Mega Cap Growth ETF climbing 2.6%.

After ceding ground to other areas of the market last week, mega-cap technology stocks reasserted themselves. Five of the "Magnificent Seven" stocks finished higher, allowing the market-weighted S&P 500 to comfortably outperform the S&P 500 Equal Weight Index (+0.2%). The DJIA also benefited from its recent addition of Alphabet A (GOOGL 353.65, +16.26, +4.82%) Class A shares, giving the price-weighted index modestly greater exposure to today's rebound in mega-cap technology.

The communication services sector (+3.1%) led the advance, with Alphabet A (GOOGL 353.65, +16.26, +4.82%) providing solid leadership following its first full session as a DJIA component. Elsewhere, Comcast (CMCSA 24.22, +1.05, +4.53%) traded higher after announcing plans to separate NBCUniversal and Sky into an independent public company through a tax-free spin-off, while Charter Comm (CHTR 146.17, +12.53, +9.38%) gained after Bloomberg reported the company is in discussions with SpaceX (SPCX 164.06, +10.82, +7.06%) regarding a mobile phone partnership. The Comcast news, however, weighed on other broadband and wireless providers, including Verizon (VZ 44.10, -2.44, -5.24%), T-Mobile US (TMUS 173.97, -8.71, -4.77%), and AT&T (T 21.82, -0.90, -3.96%).

The consumer discretionary sector (+2.7%) also posted a strong gain as its mega-cap components rebounded. Tesla (TSLA 411.84, +32.13, +8.46%) reclaimed its 50-day moving average (405.03), while Amazon (AMZN 240.14, +7.45, +3.20%) benefited from encouraging Prime Day sales data.

Technology stocks experienced considerable intraday volatility before ultimately finishing as one of the market's leadership groups. Semiconductor stocks recovered from an early selloff that briefly sent the PHLX Semiconductor Index more than 2% lower before ending the session up 3.8%. Early weakness in memory names following reports that Apple (AAPL 281.74, -2.04, -0.72%) was seeking approval to purchase memory chips from China's ChangXin Memory Technologies ultimately gave way to broad buying interest, while Applied Materials (AMAT 694.64, +67.80, +10.82%), Corning (GLW 255.79, +34.74, +15.72%), and other AI infrastructure beneficiaries rallied on news of major long-term investment plans from Samsung and SK Hynix. Corning finished as the top-performing S&P 500 component.

Software also contributed to the advance, with the iShares Expanded Tech-Software Sector ETF (IGV) rising 1.9%.

The information technology sector (+1.7%) finished among the market's leaders despite late-session weakness in Super Micro Computer (SMCI 28.15, -2.48, -8.10%), which declined after Bloomberg reported that Taiwanese authorities raided one of the company's offices as part of an investigation into the smuggling of NVIDIA chips into China.

Elsewhere, the industrials (+0.8%), health care (+0.1%), and financials (+0.1%) sectors also finished higher.

The materials sector (-1.9%) was the day's weakest performer as construction materials names gave back a portion of last week's gains, with Martin Marietta (MLM 581.23, -34.83, -5.65%) particularly weak after announcing the acquisition of Lhoist North America.

The real estate sector (-0.7) also lagged, while the defensive consumer staples (-0.4%) and utilities (-0.5%) sectors underperformed as investors rotated back toward growth-oriented stocks.

Overall, today's session marked a convincing rebound for the market's largest technology names after they ceded leadership last week. The S&P 500 and Nasdaq Composite recovered roughly half of last week's losses, while the S&P 500 also reclaimed its 50-day moving average (7,371), which it briefly lost in Friday's session.

U.S. Treasuries started the holiday week on a quiet note with 10-year note yield and shorter tenors finishing lower for the first time since last Monday while the long bond outperformed, settling just above its unchanged level. The 2-year note yieds settled up two basis points to 4.11%, and the 10-year note yield finished unchanged at 4.37%. 

There was no economic data of note. 

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