Follow the Trend: New Records for S&P 500 and NASDAQ Composite on Tech Optimism
Despite some weakness in the Dow and small caps, Monday’s US trading session was once again dominated by tech-led strength, with the NASDAQ
Quick overview
- The NASDAQ and S&P 500 reached new all-time intraday highs, driven by strong tech momentum.
- Despite minor declines in the Dow and Russell 2000, investor sentiment remains positive ahead of upcoming earnings reports.
- Small-cap stocks are showing divergence, with the Russell 2000 underperforming due to weakness in certain sectors.
- The overall market trend remains bullish as long as key technical support levels hold.
Live NAS100 Chart
Despite some weakness in the Dow and small caps, Monday’s US trading session was once again dominated by tech-led strength, with the NASDAQ pushing further into record territory.
Tech Momentum Lifts NASDAQ and S&P to Intraday Highs
US equity markets displayed resilience to start the week, with modest gains in the NASDAQ and S&P 500 offsetting minor declines in the DOW Jones and Russell 2000. Investor sentiment remained upbeat ahead of a heavy slate of earnings reports and key macroeconomic data due later in the week.
Both the NASDAQ Composite and the S&P 500 notched fresh all-time intraday highs during Monday’s session. The S&P 500 peaked at 6,336.08 before settling slightly lower at 6,305.60, still marking a positive close. The NASDAQ climbed to 21,077.37, before pulling back modestly to finish at 20,974.17, up 0.30% for the day. Despite that rotation lower, the upward trend remains intact.
NASDAQ Rally: Technically Very Strong
Technically, the NASDAQ remains well-positioned within a strong uptrend. Recent price action has shown consistent gains, punctuated by short-lived corrections toward key Fibonacci levels. The breakout to new highs on Monday continues to validate the broader bullish trend.
Even though the index is technically overbought on shorter timeframes, momentum remains firmly with the bulls. The 50-hour and 100-hour moving averages are acting as dynamic support zones. A break below these levels could signal the early stages of a deeper correction—but until then, the trend remains your friend.
Small-Cap Divergence and Market Breadth Caution
One notable divergence continues: small-cap stocks. The Russell 2000 fell by 0.40%, highlighting that market breadth remains uneven. While large-cap tech names keep powering the broader market forward, other sectors and capitalization tiers are struggling to participate fully in the rally.
Still, for now, the strength in the NASDAQ and S&P is dominating the market narrative.
US Stock Market Closing Summary — July 21, 2025
Dow Jones Industrial Average
▸ Ended the session slightly lower, shedding 19.12 points or -0.04%
▸ Final closing level: 44,323.07
▸ The blue-chip index continues to hover near recent highs but showed signs of consolidation as investors await earnings data from key industrial and consumer names.
S&P 500 Index
▸ Rose 8.81 points, a +0.14% gain on the day
▸ Final level: 6,305.60, nearing fresh all-time highs
▸ Gains were fueled by strength in large-cap tech and defensive healthcare names, indicating a cautious yet upward bias in broader markets.
NASDAQ Composite Index
▸ Led the large-cap gains with an increase of 78.52 points or +0.30%
▸ Closed at 20,974.17, reflecting continued momentum in high-growth technology and AI-related sectors
▸ The index benefited from strong sentiment toward mega-cap names and optimism about AI infrastructure earnings this week.
Russell 2000 (Small-Cap Index)
▸ Underperformed the major averages, falling 8.87 points or -0.40%
▸ Closed at 2,231.13
▸ Weakness in financials and industrials dragged on the small-cap index, which has struggled to keep pace with large-cap growth stocks amid macro uncertainty and rate sensitivity.
Conclusion: Follow the Trend, Watch the Supports
In classic bull market fashion, big tech continues to do the heavy lifting, helping the NASDAQ and S&P hit fresh records. As long as technical support zones hold, the uptrend remains intact—even amid minor dips. Until we see significant breaks below moving averages or a shift in earnings sentiment, the bulls remain firmly in control.
Nasdaq Index Live Chart
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