Wall Street’s main equity indices advanced on Monday, with the Dow Jones Industrial Average closing at a record 53,055.91, as a sharp rebound in chip and artificial-intelligence stocks drove the S&P 500 up 0.72% and the Nasdaq Composite 1.12% higher. The gains followed a holiday-shortened week in which semiconductor names had lost momentum, and came despite a majority of S&P 500 constituents declining on the day, underscoring the market’s reliance on a narrow band of technology giants.

The catalyst was a recovery in the Philadelphia Semiconductor Index, which rose 2.2% after two sessions of losses. Broadcom jumped 3.7% after extending a chip-supply agreement with Apple through 2031, while AMD, Qualcomm and ASML all posted gains exceeding 3%. The move was reinforced by positioning ahead of two events that will test global appetite for AI-linked equities: South Korea’s SK Hynix plans to raise $28 billion in a Nasdaq listing this week, and Elon Musk’s SpaceX is set to join the Nasdaq 100 index on Tuesday, forcing passive funds to buy the stock.

Viewed from New York trading desks, the session reflected a market still wrestling with AI valuations. Strategists at Bank of America cautioned that leadership is rotating away from hyperscalers toward large-cap value names in energy and finance, while J.P. Morgan Asset Management noted that investors have been shifting exposure from the “Magnificent Seven” to infrastructure plays such as semiconductors and hardware. In Washington, the Federal Reserve’s policy path remained in focus: a cooler-than-expected jobs report last week trimmed the probability of a July rate hike to around 25%, and governor Christopher Waller said forward guidance can be a valuable tool but becomes problematic if used inflexibly. The ISM services index edged down to 54.0, matching expectations and offering no fresh impulse.

The next factual milestones are the SK Hynix US listing, which will gauge institutional demand for AI memory chips, and the release of the Fed’s June meeting minutes on Wednesday. The second-quarter earnings season begins later in the week with reports from Delta Air Lines and PepsiCo, with analysts projecting aggregate S&P 500 earnings growth of 24% year-on-year, led by a 65% surge in the technology sector.