After the previous week’s pullback, the S&P 500 rose 2.4% to finish just shy of a new all-time closing high, while the Nasdaq Composite surged 3.9% to notch a new record. The Dow Jones Industrial Average added 1.4%, the Russell 2000 rose 2.4%, and the S&P Midcap 400 advanced 0.6%. Strong gains in Apple (+8.4% lastweek), which announced a $100 billion increase in U.S. manufacturing investment, were a major driver of the market’s strength. Mega-cap momentum was evident across the board, with the Vanguard Mega Cap Growth ETF climbing 3.6% for the week. The market-weighted S&P 500 (+2.4%) far outpaced the equal-weighted S&P 500, which rose just 0.8%, underscoring the narrow leadership of the rally.
Most S&P 500 sectors participated in the rebound. The technology sector led with a 4.3% gain, followed by the consumer discretionary (+3.8%), communication services (+3.3%), consumer staples (+3.1%), and materials (+2.4%) sectors. The financials sector rose 0.7%, and utilities added 0.4%. Real estate (-0.1%), energy (-1.0%), and health care (-0.8%) were the only sectors to post losses.
News reports indicated that Fed Governor Christopher Waller is emerging as a top candidate for Fed Chair, though no official announcement has been made. President Trump also appointed Dr. Stephen Miran to fill the recently vacated Fed Board seat of Adriana Kugler temporarily through January 31, 2026, while the search for a permanent replacement continues.
Additionally, reports surfaced that James Bullard, former St. Louis Fed president, and Marc Summerlin, a former economic adviser under the Bush administration, have been added to the shortlist for Fed Chair consideration alongside Kevin Hassett, Waller, and former Fed Governor Kevin Warsh. Trump announced that Treasury Secretary Bessent has withdrawn his name from consideration and will remain as Treasury Secretary.