The S&P 500 rose Monday to close at a fresh record as Wall Street looked to build on last week's gains.

The broad index added 0.77% to finish at 5,473.23, while the Nasdaq Composite surged 0.95% to settle at 17,857.02. The Dow Jones Industrial Average added 188.94 points, or 0.49%, to end at 38,778.10 and snap a four-day losing streak.

"Today is a follow through from what we've seen over the last week," said Greg Bassuk, CEO at AXS Investments.

"We're seeing optimism around a number of factors that have been mixed for quite some time," he said. "The economic data is starting to come in stronger with more consistency, you've got signs of a resilient economy. Certainly, there's optimism and bullishness around a greater likelihood of the potential start of rate cuts."

Megacap technology stocks bolstered the rally in the S&P 500, boosting the information technology sector 1.2%. Microsoft rose more than 1%, while Apple jumped about 2%. Alphabet, Amazon and Meta Platforms also finished higher.

Nvidia notched a fresh all-time high — but ultimately closed slightly lower — as State Street said the chipmaker will likely have a more than 20% weighting in the rebalance of its tech exchange-traded fund. Broadcom shares added 5.4% to hit new highs{

Broadcom shares rise to new record

Broadcom shares rallied 4.8% toward record highs during Monday's trading.

The move comes on the heels of a more than 23% rally last week after the chipmaker posted an earnings beat and announced a 10-for-1 stock split.

The stock last traded at $1,794, which would reflect a new closing high if Broadcom shares finish the session at these levels. The stock is up 63% year to date.

— Samantha Subin

Monday's gains come after the S&P 500 and Nasdaq posted their seventh weekly gain in eight weeks. Entering the new week, investors wondered if the market could sustain its current momentum.

Even in previous bull markets, the upward price appreciation does not typically move in a straight line, said Mona Mahajan, senior investment strategist at Edward Jones.

"Overall, the fundamentals and backdrop still remain supportive, but we would expect corrections along the way," she said, adding that two to three corrections are typical in any given trading year.

Investors are monitoring May retail sales data, due out on Tuesday, as well as home sales and housing starts data later in the week.

Stocks finish higher, S&P 500 notches record close

The S&P 500 added 0.77% to finish at 5,473.23 and notched a new record close during Monday's session.

The Nasdaq Composite surged 0.95% to settle at 17,857.02. The Dow Jones Industrial Average added 188.94 points, or 0.49%, to end at 38,778.10 and snap a four-day losing streak.

— Samantha Subin

Nvidia is in overbought territory, investor says

Jeff Kilburg, investment chief at KKM Financial, said it's time to get cautious on Nvidia. The investor worries there's downside ahead for the AI chipmaker after its monster rally this year.

"It has been a phenomenal stock, and it makes a ton of sense to own this," Kilburg told CNBC's "Power Lunch" on Monday. "But I think at some moment in time, when we talk about how the rubber meets the road, the stock's up 800%, so I think we have to consider that the air may come out of the balloon in Nvidia." 

Instead, the investment chief is more optimistic on Broadcom, which he called a momentum play benefiting from the AI theme. He also favors Chipotle and Walmart.

— Sarah Min

Stock market could correct if tech doesn't drive broad economy more, JPMorgan warns

Investors should believe that technology will become an even bigger part of economic expansion for the stock market to not see a major pullback, according to JPMorgan.

"For equities to avoid a 20%+ correction, you have to believe that tech will become a much more meaningful driver of growth for the broad economy in short order," Marko Kolanovic, the firm's chief global market strategist, told clients.

His call comes as some have questioned if the current rally is sustainable without wider leadership. This concern has been especially pertinent as the market has continued to grind into never-before-seen levels.

"We believe tech will continue to be the key driver of economic growth for years to come," he said. But, "we don't think its impact on corporate P&Ls across the board will be that profound so suddenly, and so we remain cautious here."

In this environment, Kolanovic said to expect weaker economic growth, a correction in equities and a better entry point for investors.

— Alex Harring

AI trend remains strong, but weakness elsewhere in the market, says Schwab's Sonders

Artificial intelligence-related stocks are currently trading at rich valuations after more than a year of investor excitement around the trend. But while fundamental factors around these names are supportive of their multiples, the market isn't in the all-clear zone, according to Charles Schwab chief investment strategist Liz Ann Sonders. 

"AI and its enthusiasm — I think that's very legitimate," Sonders told CNBC's "Squawk on the Street" on Monday. "At this stage in the game, the trajectory of earnings, you could argue, is supportive of valuations."

To be sure, Sonders noted the significant lack of market breadth and weakness under the surface.

The full story can be found here.

— Hakyung Kim

Divide among S&P 500 stocks hits record, by one measure, BTIG says

The performance difference between the largest tech stocks and the median company in the S&P 500 is carving new ground in the history of some technical indicators.

BTIG strategist Jonathan Krinsky said in a note to clients that the gap between the market cap-weighted S&P 500 and the equal-weighted version of the index hit a first-ever level by relative strength index, a popular momentum indicator.

This could be another point to the worries that weak market breadth suggests the rally is running out of gas.

"Bulls continue to look for breadth expansion and a catchup to the leaders. While that's always possible, we find it rarely works that way when the divergences get this deep and long-lasting," Krinsky said.

— Jesse Pound

Goldman Sachs raises S&P 500 year-end expectation

Goldman Sachs hiked its year-end S&P 500 forecast to 5,600 as earnings growth proves to be strong.

Chief U.S. equity strategist David Kostin's new prediction implies about 3% upside from where it finished last week and a total return of more than 17% for the full year.

"Our previous forecast assumed a year-end forward 12-month multiple of 19.5x and an expectation that, by year-end, the current bottom-up consensus 2025 EPS estimate would be revised halfway to our top-down forecast," he wrote to clients. "Our updated forecast incorporates a smaller downward revision to consensus EPS and a larger P/E premium for mega-cap tech."

CNBC Pro subscribers can read the full story here.

— Alex Harring

May retail sales data set to release Tuesday

Wall Street will get further insight into the consumer Tuesday morning with the release of May retail sales data. Economists polled by FactSet anticipate retail sales rose 0.3% last month, up from no change in the prior reading.

The data is due out 8:30 a.m. ET.

— Sarah Min

U.S. crude oil gains nearly 1% to trade above $79 per barrel

U.S. crude oil rose nearly 1% on Monday to trade above $79 per barrel, after breaking a three-week losing streak for the benchmark's best performance since April.

Oil prices closed out last week nearly 4% higher, as analysts expect the market to tighten in the third quarter as summer fuel demand draws down inventories.

"It's more of a sense that this market is likely to get tighter as we go deeper in summer," Helima Croft, head of global commodity strategy at RBC Capital Markets, told CNBC's "Closing Bell: Overtime" on Friday.

— Spencer Kimball

Stocks making the biggest moves midday

Here are the stocks on the move midday:

• Virgin Galactic — The struggling space company slid 16% as the stock's 1-for-20 reverse stock split took effect. The company was trying to get its stock back above $1 a share after a steady slide over the past three years.
• AMC Networks — Shares of the cable TV network dropped 4% after it announced plans to sell $125 million in convertible senior notes due 2029 in a private offering to institutional buyers.
• Xponential Fitness — The stock surged around 26% after the company named Mark King as CEO effective today. The company also announced that Brenda Morris, who served as interim CEO, will remain on its board of directors.

Read the full list here.

— Sean Conlon

Nvidia to get more than 20% weighting in major tech fund

A rebalancing of the Technology Select Sector SPDR Fund will give Nvidia a more than 20% weighting, while bringing Apple down to 4.5%.

Microsoft will have the highest weighting in the index, followed by the chipmaker, according to Matthew Bartolini, head of SPDR Americas Research.

Read more on the rebalance here.

— Jesse Pound

Fed's Harker sees one rate cut this year if inflation data indicates

Philadelphia Federal Reserve President Patrick Harker said he would be in favor of cutting interest rates this year, but likely just once and only as long as the inflation data cooperates.

"I have a forecast for inflation, employment and economic activity: slowing but above trend growth, a modest rise in the unemployment rate and a long glide back to target for inflation," Harker said in remarks for a speech in his home district. "And if all of it happens to be as forecasted, I think one rate cut would be appropriate by year's end."

Inflation metrics this year, particularly regarding "the long-term stubbornness of shelter inflation," leave the policymaker looking for more evidence that inflation is coming down amid "an air soaked with uncertainty."

"If the higher inflation in the first quarter was a bump in the road, I want to make sure that the lower inflation we are seeing so far in the second quarter is not a pothole," he added.

Harker, who will not vote this year or the next on the rate-setting Federal Open Market Committee, insisted he remains data dependent and noted that it is "quite possible" the year could end with two cuts or none.

— Jeff Cox

Broadcom shares rise to new record

Broadcom shares rallied 4.8% toward record highs during Monday's trading.

The move comes on the heels of a more than 23% rally last week after the chipmaker posted an earnings beat and announced a 10-for-1 stock split.

The stock last traded at $1,794, which would reflect a new closing high if Broadcom shares finish the session at these levels. The stock is up 63% year to date.

— Samantha Subin

Adobe shares fall on FTC lawsuit

Adobe declined 2.5% on Monday after the Federal Trade Commission filed a lawsuit against the company and two of its executives, Maninder Sawhney and David Wadhwani.

The federal court complaint filed by the U.S. Department of Justice stated that Adobe deceived customers about early termination fees for its most-popular subscription plan and made cancellations difficult.

"Adobe trapped customers into year-long subscriptions through hidden early termination fees and numerous cancellation hurdles," said Samuel Levine, director of the FTC's Bureau of Consumer Protection. 

— Hakyung Kim

Small-cap stocks struggle

Small-cap stocks slipped on Monday, another leg down in what has been a tough month, quarter and year.

The small cap-focused Russell 2000 fell 0.5% in Monday's session. By comparison, the S&P 500 added 0.2%.

The Russell 2000 has underperformed more broadly, falling more than 3% in June and 6% in the second quarter. The index has shed around 1.5% in 2024, despite the three major indexes all tracking for gains on the year.

— Alex Harring

Nvidia hits record before pulling back

Nvidia shares rose as much as 1.4% to hit a record high. Nvidia has been on a tear this year due to unrelenting enthusiasm around artificial intelligence. Monday's gain was short lived, however, with the stock last down 0.6%.

— Fred Imbert

Xponential Fitness rallies on new CEO announcement

Xponential Fitness shares surged more than 20% on Monday after the Club Pilates and Pure Barre parent named its new chief executive.

Shares jumped more than 24% in morning trading. That put the stock on pace for its second-best day in its nearly three years as a public company.

Xponential Fitness on Monday announced Mark King would take the role effective the same day. King most recently held the same position at Taco Bell.

He succeeds Brenda Morris, who served as interim CEO after Anthony Geisler was suspended.

— Alex Harring, Brandon Gomez

S&P 500 opens little changed to start the week

The S&P 500 opened little changed Monday to kick off a four-day trading week.

The broad index dipped 0.1%, while the Nasdaq Composite added nearly 0.1%. The Dow Jones Industrial Average dropped 140 points, or 0.35%.

— Samantha Subin

Manufacturing outlook in New York area surges

Manufacturing activity improved in the New York area while the six-month outlook surged to its best level since early 2022, according to a Federal Reserve survey released Monday.

The Empire State Manufacturing Index, though still negative, improved to -6 for June, up 9.6 points from May and better than the -10.5 estimate from the Dow Jones consensus.

Within the survey, the expectations index for general business conditions leaped to 30.1, up 15.6 points on the month. Other measures saw sharp improvements in new orders and delivery times, while price measures decreased though remained positive.

The survey registers the percentage difference between companies seeing expansion and contraction.

— Jeff Cox

December rate cut is 'reasonable,' Fed's Kashkari says

It's a "reasonable prediction" that the Federal Reserve will cut rates in December, according to Minneapolis Fed President Neel Kashkari.

"We need to see more evidence to convince us that inflation is well on our way back down to 2%," Kashkari told CBS' "Face the Nation" on Sunday.

"We're in a very good position right now to take our time, get more inflation data, get more data on the economy, on the labor market, before we have to make any decisions," Kashkari said. "We're in a strong position, but if you just said there's going to be one cut, which is what the median indicated, that would likely be toward the end of the year."

— Fred Imbert

Stocks making the biggest moves premarket

Check out the companies making headlines before the bell:

• Toll Brothers — The homebuilder gained 1.3% after Goldman Sachs upgraded it to neutral from sell. Goldman cited near-term upsides from customization and upgrades, as well as continued outperformance of new home sales. 
• Best Buy — Shares rose more than 3% following a UBS upgrade to buy from neutral. According to the investment bank, new products and an appliance upgrade cycle could strengthen the stock. 
• Autodesk — The software company added 4% on news that activist fund Starboard Value has taken a $500 million stake in the company. Starboard is considering taking legal action over concerns regarding delayed disclosures on an internal investigation. 

The full list can be found here.

— Hakyung Kim

European markets open higher; France's CAC recovers losses

European markets opened higher Monday as investors shook off negative sentiment from last week and looked ahead to the Bank of England's latest interest rate decision.

The pan-European Stoxx 600 was up 0.3% in early deals, with all major bourses and the majority of sectors in the green.

France's CAC 40 rose 0.8%, recovering from last week, when the index fell more than 6.2%, marking its worst weekly loss since March 2022. Meanwhile, the U.K.'s FTSE 100 was up 0.3%, Germany's DAX was 0.7% higher and Italy's MIB was up 1.2%.

— Karen Gilchrist

Stock futures open flat

Stock futures were little changed to begin trading on Sunday night.

Futures tied to the Dow Jones Industrial Average dipped 13 points. S&P 500 futures and Nasdaq 100 futures lost 0.1% and 0.03%, respectively.

— Tanaya Macheel