The stock-market rally is moving beyond Big Tech and investors are thrilled

Wall Street generally views improving breadth as a signal of a healthy stock market and a sustained advance

- Hannah Erin Lang & Roshan Fernandez

The summer stock rally is broadening beyond big tech. Megacap technology stocks such as Nvidia, Microsoft, and Broadcom led the market's rapid, tariff-spurred selloff earlier this year, only to rebound just as quickly a few weeks later when trade fears eased. Now, with economic fears diminished and optimism growing that the Trump administration will take a milder stance on trade, the recovery has expanded to include stocks across a more diverse group of sectors, such as financials, industrials, and utilities.

The number of stocks in the benchmark S&P 500 closing above their 50-day moving average has climbed recently to levels last seen in the fall, before Donald Trump's election victory launched an end-of-year rally. And in another sign of breadth, a measure that tracks the number of stocks rising versus those declining notched a new high on Friday. While the so-called Magnificent Seven tech stocks still hold investors' attention—and sway over the market—a broader participation in the recovery has helped propel the Nasdaq composite and the S&P 500 to all-time highs in June. It could also signal that stocks will keep climbing through the summer, analysts say.

"We've seen this before: big tech leads and the market follows," said Adam Turnquist, chief technical strategist at LPL Financial. "It seems like we are dusting off that playbook."