Nasdaq-100 jumps by 3.14% as tech stocks rally

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The tech-heavy Nasdaq-100 posted strong gains of 3.14% on Monday as all companies in the magnificent seven rallied. The AI-buildout continues, and in the view of the SGFX research team, the tech sector appears to have demonstrated a strong growth pattern over the past few months.

All stocks in the magnificent seven posted gains on Monday, reflecting that tech played a strong role in driving the rally in the Nasdaq-100. 

• GOOGL: $369.35 (2.69%)
• AAPL: $296.42 (1.82%)
• AMZN: $246.02 (3.13%)
• META: $593.48 (4.67%)
• MSFT: $399.76 (2.31%)
• NVDA: $212.45 (3.54%)

The rally comes at a time as the Bank of Japan chose to raise rates for the first time since December 2025. The benchmark lending rate is now 1% and reflects Japan’s hawkish stance to combat inflation. The move follows the ECB’s decision to lift borrowing rates to 2.25% (The deposit facility rate).

The FOMC meeting is yet to yield a decision, but a rate of hike or steady rates are expected as a key decision. This will be the first Federal Open Committee meeting to be held under Federal Reserve Chair Kevin Warsh, who may or may not adopt the similar conservative stance that Jerome Powell did. 

When measured on an ETF basis, the two leading sectors in terms of gains were technology (+3.78%) and semiconductors (+5.4%) according to TIKR. (Past performance of ETFs is not indicative of future results and capital is at risk.)

Based on available data, the SGFX research desk observed that a strong pattern of growth, tech-led IPOs and repeated investments from tech companies into other tech-focused startups have been a few of the defining characteristics since the AI rally began. 

Upon analysis by the SGFX research team, there was no noticeable earnings report or positive update that indicated a positive outlook for tech companies, indicating the recent surge may be partly attributable to broader market sentiment around AI, though no single catalyst has been identified.

Summary

In the view of the SGFX research desk, with the peace deal signed (Source: Bloomberg), monetary policy set by governments is now likely to prioritize unwinding the effects of inflation rather than boosting or lending support to business through rate cuts. 

Research references

• Stock Market Today: Dow, S&P Live Updates for June 16 - Bloomberg
• BOJ Raises Rate to 31-Year High and Hits Normalization Milestone - Bloomberg
• US and Iran Agree to Halt War, Restart Middle East Oil Shipments - Bloomberg
• TIKR data

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