$SPX Hits New High as $PLTR Ignites Software Rally
The $S&P 500(.SPX)$ and $NASDAQ 100(NDX)$ extended their advance on Tuesday, confirming the bullish weekly setup highlighted over the weekend. Both indices opened above their key weekly pivot levels, reinforcing the view that the current move could mark the beginning of another leg higher rather than just a short-term rebound.
As the rally developed, price continued to validate key technical levels. For the S&P 500, Monday's move above 7,563 confirmed the initial bullish trigger. On Tuesday, the index held above its daily pivot at 7,571.8 before steadily clearing successive resistance levels at 7,638 and 7,677. By the close, the S&P 500 had reached 7,744, finishing the session at a fresh all-time high.
The Nasdaq 100 also maintained its bullish structure after reclaiming 28,862, while $SPDR S&P 500 ETF Trust(SPY)$ remained above 754 and $Invesco QQQ(QQQ)$ held above 702, reinforcing broad market strength.
Several themes discussed in Monday's outlook also played out as expected. $Amazon.com(AMZN)$ , which appeared technically stretched after its post-earnings surge, pulled back 2.3% as momentum cooled. Meanwhile, the $VanEck Semiconductor ETF(SMH)$ successfully defended its key weekly support near 537, allowing the semiconductor group to remain constructive despite some profit-taking in AI leaders.
The biggest catalyst of the day came from software.
$Palantir Technologies Inc.(PLTR)$ delivered a stunning 29% rally after earnings, validating the bullish setup identified last week when the stock reclaimed its key weekly support around 124. The combination of strong fundamentals and a confirmed technical breakout fueled buying across the broader software sector, extending leadership already established by Microsoft following its own earnings-driven breakout. Strength in high-quality software names provided another important source of support for the broader indices.
Macro conditions also turned more favorable.
Investor sentiment improved after U.S. Treasury Secretary Scott Bessent said negotiations to reopen the Strait of Hormuz could produce an agreement within the next 24 to 48 hours. The comments triggered a sharp decline in energy prices, with both WTI and Brent crude falling more than 5%. Lower oil prices helped ease concerns over inflation, transportation costs, and corporate margins, providing an additional tailwind for equities.
With software leadership strengthening, semiconductors remaining resilient, and easing energy prices reducing macro headwinds, the broader market continues to favor the bulls. As long as the major indices remain above their respective weekly support levels, the current advance continues to resemble the early stages of a broader bullish expansion rather than a late-stage rally.
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