STOCKS | S&P 500, Nasdaq Jump as Broadcom Rallies on Extended Apple Chip Deal

The S&P 500 and Nasdaq ended sharply higher on Monday as Broadcom and other chip stocks rallied on investor demand for artificial intelligence-related names ahead of what is expected to be a strong second-quarter earnings season, according to RTHK. Broadcom rose 3.7% after it and Apple agreed to extend a deal through 2031 to develop and supply a range of custom chips. The S&P 500 information technology sector index climbed 1.3%, while the Philadelphia SE Semiconductor index gained 2.2% after two straight sessions of losses. Microsoft shares fell almost 1% after the company said it was cutting about 2.1% of its workforce, or roughly 4,800 jobs. In economic data, the Institute for Supply Management said its non-manufacturing purchasing managers index edged down to 54.0 last month, matching expectations. SpaceX dipped 1% with over US$26 billion worth of its shares exchanged, most of that in the final seconds of the session, and is set to join the Nasdaq 100 on Tuesday. The S&P 500 rose 0.7% to 7,537, the Nasdaq gained 1.1% to 26,121, and the Dow Jones Industrial Average added 0.3% to 53,055. Analysts expect S&P 500 companies to increase earnings by an aggregate 24% year over year in the second quarter, according to LSEG. Traders see a 25% chance of a 25-basis-point rate hike at the central bank's July 29 meeting, according to CME's FedWatch tool.