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

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.

- 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."