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Wall Street regained momentum this week, with renewed optimism in the tech sector helping to lift sentiment. A key announcement from Apple sparked broader gains, though investors remain alert to potential headwinds from earnings and macroeconomic shifts.
Wall Street bounces back with tech-driven gains
Wall Street staged a strong recovery on Wednesday, breaking its recent losing streak with a surge led by technology stocks.
The S&P 500 advanced by 0.73% to close at 6,345.06, while the Nasdaq climbed 1.21%, fuelled by an unexpected 5% rally in Apple shares.
The Dow Jones Industrial Average added 81 points, recovering after declines in six of the past seven sessions.
Apple’s sharp rise followed a major announcement from CEO Tim Cook, who revealed plans to invest an additional $100 billion in US manufacturing – raising the company’s total domestic investment commitment to $600 billion over four years.
Speaking from the Oval Office alongside President Trump, Cook declared that Apple was “coming home”, with all units of the iPhone set to feature glass manufactured in Kentucky.
Investors welcomed the news, viewing it as both economically stimulative and politically favourable. The announcement sparked renewed interest across the tech sector, with six of the seven “Magnificent Seven” stocks closing higher. Microsoft was the only outlier, dipping 0.5%.
Technical analysis: S&P 500 eyes key resistance
The S&P 500 has maintained a strong upward trajectory since reaching a low of 4,802.15 in April 2025, gaining over 1,500 points in a steady climb.
The index is currently consolidating just below a major resistance level at 6,439.58, a recent swing high.
Picture: SP500 holds near 6365, but momentum slows as MACD turns bearish on the VT Markets app.
The price remains well supported above the 30-day moving average, which continues to trend upwards.
Shorter-term 5- and 10-day moving averages have begun to converge, signalling potential short-term uncertainty.
Although a minor pullback has occurred from recent highs, today’s session opened with modest gains (+0.27%), indicating that bullish sentiment remains intact.
However, the MACD indicator shows signs of waning momentum. The MACD line has crossed beneath the signal line, and the histogram has turned negative – suggesting a potential short-term consolidation or correction unless bulls can convincingly push above 6,439.
Immediate support is found around the 6,012 level, which previously acted as a breakout zone. A drop below this level could open the door for a deeper pullback toward the 5,800–5,600 range.
Conversely, a confirmed break above 6,439 may pave the way for a move into uncharted territory near the 6,600 mark.
What’s ahead
If current momentum holds and earnings reports continue to impress, the S&P 500 could soon retest the 6,400 resistance level – potentially setting the stage for a new leg higher.
Positive surprises in upcoming corporate results, particularly from heavyweight tech firms, may act as further fuel for the rally.
However, the path forward is not without risk. Any signs of earnings fatigue, cautious forward guidance, or emerging political headwinds – particularly around trade, regulation, or fiscal policy – could prompt a pullback, dragging the index toward the 6,200–6,250 support zone.
Investors should remain attentive to key developments from Apple, as the company’s strategic direction and supply chain shifts continue to influence broader tech sentiment.
In parallel, macroeconomic commentary from central banks and policymakers will play a critical role in shaping risk appetite over the coming weeks.
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