Technology and consumer discretionary stocks fueled the gains. The S&P 500 tech sector rallied 2.46%, driven by strength in semiconductors and megacap names. Nvidia jumped 3.4%, while Alphabet and Amazon each climbed 3%. The consumer discretionary group added 1.23%, with Expedia and Albemarle among top gainers.
The semiconductor index advanced 3.1%, reflecting renewed interest after last week’s selloff driven by concerns over monetization challenges in the AI sector. Meanwhile, the small-cap Russell 2000 rose 1.4%, benefiting from the broader risk-on sentiment.
How Did Shutdown Hopes Affect Specific Stocks and Sectors?
Airlines rebounded as traders priced in reduced operational risks tied to air traffic controller staffing shortages. United Airlines and Delta Air Lines gained 2.5% each. However, health insurers declined after the Senate’s funding proposal omitted Affordable Care Act subsidies. Centene dropped 9.5%, while Humana and Elevance Health each lost around 2%.
Venture Global jumped 10% after the LNG exporter reported a swing to third-quarter profit, bucking broader energy sector weakness. Energy stocks edged down 0.48% despite gains in individual names, reflecting pressure from lower crude prices.
What’s the Broader Earnings Picture Telling Traders?
Earnings have broadly exceeded expectations this quarter. Of the 446 S&P 500 companies that have reported, 83% beat earnings estimates, according to LSEG. Tech names continue to dominate performance metrics, despite short-term corrections tied to AI valuation concerns.