Small-cap stocks also performed well, with the Russell 2000 closing 1.7 percent higher on Monday
The S&P 500 has experienced a significant rise on Monday, marking its best performance since June 5.
According to CNBC, the index increased by 1.08 percent to reach 5,564.41.
The Nasdaq Composite saw a notable gain of 1.58 percent, closing at 18,007.57. Additionally, the Dow Jones Industrial Average rose by 127.91 points, or 0.32 percent, ending at 40,415.44.
Nvidia rebounded with a 4.8 percent increase, recovering from an 8 percent decline last week. Other major tech companies, including Meta Platforms and Alphabet, also saw increases of more than 2 percent.
In contrast, CrowdStrike experienced a significant drop, losing 13.5 percent after an 18 percent decline the previous week.
Mona Mahajan, senior investment strategist at Edward Jones, explained, “We’re seeing a rotation back into the technology sector following a substantial sell-off, worsened by the CrowdStrike decline. Broader earnings and potential Fed rate cuts are providing some optimism for investors.”
Last week, tech stocks faced pressure as investors shifted towards smaller companies, causing the S&P 500 to fall by nearly 2 percent and the Nasdaq to drop by over 3 percent. Despite the tech rebound, small-cap stocks performed well, with the Russell 2000 closing 1.7 percent higher on Monday.
Political developments also drew traders' attention. President Joe Biden withdrew from the presidential race on Sunday and endorsed Vice President Kamala Harris.
Analysts have noted an increasing likelihood of a victory for former President Donald Trump in November following Biden’s poor debate performance in June.
Wall Street remains focused on earnings reports and central bank policies. Traders currently anticipate a 93 percent chance that the Federal Reserve will cut interest rates at its September meeting.
