{"id":62497,"date":"2026-05-29T10:07:18","date_gmt":"2026-05-29T14:07:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-sector-surge-propels-nasdaq-and-sp-500-higher-following-pce-inflation-data\/62497\/"},"modified":"2026-05-29T10:07:18","modified_gmt":"2026-05-29T14:07:18","slug":"tech-sector-surge-propels-nasdaq-and-sp-500-higher-following-pce-inflation-data","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-sector-surge-propels-nasdaq-and-sp-500-higher-following-pce-inflation-data\/62497\/","title":{"rendered":"Tech Sector Surge Propels Nasdaq and S&P 500 Higher Following PCE Inflation Data"},"content":{"rendered":"

The U.S. stock market opened with a decisive tilt toward technology on Friday, May 29, 2026, as investors processed the latest inflation data and a massive rally in the hardware sector. While the broader market shows signs of optimism, a clear divergence has emerged between large-cap growth stocks and the broader small-cap universe.<\/p>\n

Major Indexes Performance at the Open<\/h2>\n

As of the morning session, the tech-heavy Nasdaq-100, tracked by the Invesco QQQ Trust (QQQ<\/a>), is leading the charge with a gain of 0.75%. This outperformance is mirrored by the State Street SPDR S&P 500<\/a> ETF Trust (SPY<\/a>), which rose 0.41% shortly after the opening bell. The blue-chip Dow Jones<\/a> Industrial Average, represented by the State Street SPDR Dow Jones Industrial Average ETF Trust (DIA<\/a>), is also in positive territory, up 0.32%.<\/p>\n

In contrast, small-cap stocks are struggling to find footing. The iShares Russell 2000 ETF (IWM<\/a>) fell 0.52% in early trading, suggesting that the current rally is concentrated in "Big Tech" rather than the broader economy. This disparity is further highlighted by sector performance; the Technology Select Sector SPDR ETF (XLK<\/a>) has surged 2.45%, while defensive sectors like the Consumer Staples Select Sector SPDR ETF (XLP<\/a>) have dropped 1.67%.<\/p>\n

Economic Data and Upcoming Market Events<\/h2>\n

The primary catalyst for today\u2019s price action was the release of the April Personal Consumption Expenditures (PCE) price index. As the Federal Reserve\u2019s preferred inflation gauge, the data was closely watched for hints regarding future interest rate cuts. The report showed that inflation remains on a cooling trend, meeting economist expectations and providing the "green light" for growth-oriented investors to move back into equities.<\/p>\n

Looking ahead to next week, the market will shift its focus to a heavy slate of enterprise software and semiconductor earnings. Key reports include:<\/p>\n