S&P500 renewed strength in mega-cap technologyUS 500 (per 1.0)TRADENATION:US500TradeNationThe S&P 500 gained 1.18%, snapping a five-session losing streak as investors returned to large-cap technology stocks. The rally puts the index on track for its strongest quarterly performance in six years, supported by renewed buying in AI and mega-cap growth names. The Magnificent Seven rose 2.58%, led by Tesla (+8.46%), Alphabet (+4.79%), and Amazon (+3.20%). Semiconductor stocks also rebounded strongly, helping to drive the broader market higher after recent weakness. Despite the strong equity performance, inflation concerns resurfaced as Brent crude climbed back above $73 per barrel following renewed Middle East tensions and uncertainty surrounding shipping through the Strait of Hormuz. Higher oil prices pushed inflation expectations modestly higher, leading investors to price in a slightly more hawkish Federal Reserve outlook and nudging Treasury yields higher. Markets also welcomed news that the US Supreme Court allowed Lisa Cook to remain on the Federal Reserve Board while legal proceedings continue, easing immediate concerns over the Fed's independence. Meanwhile, the Japanese yen weakened to its lowest level against the US dollar since 1986, highlighting continued strength in the US dollar and diverging global monetary policies. Trading Focus Today The S&P 500's momentum remains driven by leadership from large-cap technology and AI-related stocks. Rising oil prices and higher Treasury yields could limit further gains if inflation concerns continue to build. Investors will closely monitor developments in the Middle East, as any easing of geopolitical tensions could improve risk sentiment, while further escalation may support energy prices but pressure broader equities. Watch whether the technology-led rally broadens to the rest of the market, a key signal for the sustainability of the current advance. Bottom line: The near-term outlook for the S&P 500 remains constructive, supported by renewed strength in mega-cap technology. However, higher oil prices, firmer bond yields, and geopolitical uncertainty remain important risks that could cap upside momentum. Key Support and Resistance Levels Resistance Level 1: 7490 Resistance Level 2: 7530 Resistance Level 3: 7578 Support Level 1: 7303 Support Level 2: 7250 Support Level 3: 7200 The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. To the extent permitted by law, in no event shall Trade Nation (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk. Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Financial Spread Bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.