U.S. equities closed broadly higher Monday, with all major indices posting solid gains as investors demonstrated renewed appetite for risk assets. The Dow Jones led the charge with a 1.33% advance to 46,225, while the S&P 500 gained 1.05% to close at 6,580. The tech-heavy Nasdaq climbed 1.02% to 21,874.
Small-cap stocks significantly outperformed, with the Russell 2000 jumping 2.16% to 2,484, suggesting investors are rotating into domestically-focused companies. This rotation pattern typically signals growing confidence in economic growth prospects and reduced concerns about global headwinds.
The VIX fear gauge remained elevated at 25.3, indicating some underlying caution persists despite the day's gains.
Sector performance was mixed, with technology showing resilience despite Micron's decline. Palantir's 6.74% surge highlighted continued enthusiasm for chip-focused companies, while semiconductor concerns weighed on memory chip makers.