S&P 500 closes above 6,600, Nasdaq notches longest winning run since 2023 aided by big tech

The S&P 500 and Nasdaq notched new highs on Monday, September 15, as continued buying in shares of big tech companies, and a recovery from intraday lows in AI darling Nvidia, continued to power the indices ahead.

The Nasdaq 100 gained for the ninth day in a row, the longest winning streak for the index in 2023. The S&P 500 close above the 6,600 mark for the first time. The broader market index is now up over 35% from the tariff tantrum lows in April this year. The Dow Jones ended little changed.

Big tech continued to see buying interest with Alphabet becoming the fourth company after Apple, Microsoft, and Nvidia to scale the $3 trillion market capitalisation mark. Shares of Tesla also turned positive on a year-to-date basis after CEO Elon Musk declared a rare $1 billion purchase of shares from the open market. The EV giant is now up 93% from its 52-week lows in April.

Also aiding sentiment were statements from the US and China about a "broader consensus" being reached on TikTok and that US President Donald Trump and Chinese President Xi Jinping will be speaking on Friday to finalise the deal.

Trump wrote on Truth Social that the meeting between the two nations in Madrid went very well and that the relationship between the US and China remains a very strong one.

All eyes are on the Fed policy on Wednesday, with the street hoping a dovish commentary, which will be positive for equities and Gold, but negative for the US Dollar. On the flip side, Fed Chair Jerome Powell's standard "wait-and-watch" mode may not please the markets, especially considering the way they have run up.

Morgan Stanley believes that the near-term risk for the market is the Fed not matching up to their expectations of the pace of rate cuts. However, the investment banking firm recommends buying any dips and its most bullish scenario sees the S&P 500 at 7,200 by mid-2026.

On the flip side, JPMorgan believes that the street may turn cautious once the Fed easing begins to factor in more downside risk and reverse some of the "complacency."

Later today, the US will report retail sales for August, along with capacity utilisation and industrial production data, the final bits of macro reporting before the Fed policy decision on Wednesday.