Dow Jones DJA Rebounds Strongly as APPL Stock Hits Record High While Small Caps Rally
With the Dow recording its biggest one-day increase in weeks, U.S. stocks ended the day much higher, driven by a resurgence of optimism in..
Quick overview
- U.S. stocks closed sharply higher, with the Dow posting its strongest single-day gain in weeks, driven by optimism in tech and small caps.
- Apple Inc. reached a new all-time high after strong iPhone 17 sales in China, boosting investor confidence in the tech sector.
- The Russell 2000 index surged 1.95%, indicating a return of investor appetite for small-cap stocks amid easing Treasury yields.
- Analysts warn that while the market shows renewed optimism, volatility may persist as the earnings season progresses.
Live DOW Chart
With the Dow recording its biggest one-day increase in weeks, U.S. stocks ended the day much higher, driven by a resurgence of optimism in small and tech companies.
Dow Jones printed a new record high earlier this month, but we saw a retreat on the escalation of the tariff rhetoric between China and the US. However, the 50 SMA (yellow) held as support on the daily chart ad the price rebounded, resuming the uptrend and targeting a new all time high now.
Dow Jones chart Daily – Rebounding off the 50 SMA 
Broad Gains Across U.S. Markets
All major U.S. stock indices finished Monday firmly in the green, reflecting a broad rebound across sectors.
- Dow Jones Industrial Average rose 1.12%, adding 515.97 points to close at 46,706.58.
- S&P 500 gained 1.07%, ending the day at 6,735.13.
- Nasdaq Composite advanced 1.37%, closing at 22,990.54.
- Russell 2000, representing small-cap stocks, outperformed with a robust 1.95% surge to 2,499.90.
The strong session came as investors returned to risk assets, with tech and financials leading the charge following last week’s choppy trading.
Apple Steals the Spotlight
Apple Inc. (AAPL) dominated headlines after logging its first record close since December 26, driven by stronger-than-expected iPhone 17 sales in China. A combination of subsidies and enthusiasm for the new design helped boost demand in one of Apple’s key markets.
Shares climbed 3.95%, or $9.95, to finish at $262.24 — a new all-time high. For the year, Apple’s stock is now up 4.72%, as analysts continue to raise earnings forecasts on improving supply chain conditions and sustained global demand.
Tech Sector Extends Recovery
The broader technology sector saw widespread gains, with semiconductors and cloud services back in focus. Meta Platforms (META) jumped 2.14%, reclaiming its 100-day moving average to close at $732.17, marking a clear technical breakout after several sessions of consolidation.
Amazon (AMZN) advanced 1.61%, recovering after last week’s slide below its 200-day moving average. Monday’s rally lifted shares to $216.48, moving them back above that long-term support line — though still shy of the 100-day average at $222.28.
Advanced Micro Devices (AMD) gained 3.21%, notching a new record close at $240.56. Since September 5, AMD’s stock has skyrocketed nearly 59%, driven by strong chip demand and AI-related momentum. Microsoft (MSFT) lagged with a modest 0.63% gain, while Nvidia (NVDA) slipped 0.32%, underperforming peers after recent volatility in the semiconductor space.
Small-Caps Shine as Risk Appetite Returns
The Russell 2000’s 1.95% surge reflected a notable return of investor confidence in smaller companies, which had struggled under the weight of higher borrowing costs and slowing credit growth. Analysts suggested that easing Treasury yields and expectations of a softer Federal Reserve stance may have helped fuel buying in rate-sensitive sectors.
Market Outlook
Monday’s rebound signals renewed market optimism, though analysts caution that volatility could persist as the earnings season unfolds. With major tech names now approaching overbought territory, traders are watching for any signs of exhaustion in the rally.
Short-term momentum remains positive, particularly if bond yields continue to ease and inflation data later this week supports the case for a Federal Reserve rate cut by December.
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