US equity markets closed sharply higher, driven by strong gains in large-cap stocks and easing volatility, despite weakness in select technology heavyweights.
The rally was led by Alphabet Inc., which surged nearly 10%, acting as the primary catalyst behind the broader market strength. This momentum pushed the S&P 500 above the 1% mark, while the Dow Jones Industrial Average gained over 800 points, signaling a clear rotation into blue-chip and value stocks.
However, the tech sector presented a mixed picture. NVIDIA declined 4.63%, while Meta Platforms dropped 8.55%, indicating profit-booking in AI-driven stocks after a prolonged rally.
Investor sentiment was further supported by a sharp decline in the CBOE Volatility Index, which fell more than 10%, reflecting reduced market uncertainty and improved risk appetite.
Financial and defensive stocks led the gains, with investors rotating into names like JPMorgan Chase and Johnson & Johnson, reinforcing the broader market’s resilience.
Globally, European indices including the FTSE 100 and DAX mirrored the positive sentiment, both advancing over 1.4%. In the digital assets space, Bitcoin continued its upward trajectory, holding above the $77,000 level.
Market participants now await earnings from Chevron and Linde, which are expected to influence near-term momentum and determine whether the rally sustains.
