S&P 500, Nasdaq close sharply higher as Broadcom rallies

S&P 500, Nasdaq close sharply higher as Broadcom rallies

By Noel Randewich and Ragini Mathur

Mon July 6, 2026  

AI exuberance is back after last week’s setbacks and it sent all three indexes straight up with 3-digit gains on both the Dow and Nasdaq and the S&P also up an impressive 54 points. This was all triggered by strong expectations of a blossoming Q2 earnings season which starts shortly combined with expectations that this boom will continue through the rest of the year. The chip index was up 2.2% after last week’s slump.  

Today’s sentiment was that anyone who is not invested in tech is crazy and missing out on this rally. The S&P is now just 1% from its record close a month ago. Q2 earnings are expected to increase 24%, tech 65%. The one company that got whacked was the mighty Microsoft announcing trimming its workforce by 2.1%. Ordinarily, cost cutting is good news but investors interpret it that they’ve gone too overboard on AI spending with no clear path to AI profits. “Laying off people in lieu of moderating CapEx is a negative.” Coming off the long holiday, volume at 16.8 billion is way light vs the 23.4 average. 

DJ: 52,900.07  +594.83       NAS: 25,832.67  -207.36        S&P: 7,483.24  +0.01             7/2

DJ: 53,055.91  +155.84       NAS: 26,121.16  +288.49       S&P: 7,537.43  +54.19           7/6

Mon 7-6-26 6:08 pm S&P 500, Nasdaq close sharply higher as Broadcom rallies | Reuters