The S&P 500 and the Nasdaq closed higher on Monday as shares of chipmaker Nvidia surged following a bullish note from Morgan Stanley, leading gains in other megacap growth stocks.
Nvidia jumped 7.1%, its biggest single-day increase since May 25, when its 24% surge on a stellar revenue forecast pointed to the game-changing potential of artificial intelligence.
The rally in the chipmaker’s stock pushed the information technology index 1.85% higher, making it the strongest of 11 S&P 500 sector indexes.
Other megacap growth stocks rose, including Alphabet , up 1.4% and Amazon.com, up 1.6%. Chipmaker Micron Technology ended with a 6.1% gain.
The S&P 500 climbed 0.58% to end the session at 4,489.72 points. The Nasdaq gained 1.05% to 13,788.33 points, while Dow Jones Industrial Average rose 0.07% to 35,307.63 points.
“It’s the first day in a while that tech has really significantly outperformed,” said Jay Hatfield, CEO of Infrastructure Capital Advisors in New York.
“That’s indicative of the fact that you have this blockbuster Nvidia report coming up and that could support the tech market pretty substantially.”
Nvidia, one of several tech companies rallying this year on optimism about AI, is due to report quarterly results next week.