Stock market news today: Tech roars back as S&P 500, Nasdaq surge

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President Joe Biden Nouvelles

Nasdaq Composite,Kamala Harris,Heavy Losses

Investors are surveying a changed political landscape after Biden called off his re-election bid, assessing what it could mean for the Trump trade.

US stocks ripped higher on Monday with tech leading the gains as investors assessed the political landscape following President Joe Biden's exit from the presidential race. The S&P 500 gained more than 1% while the tech-heavy Nasdaq Composite rose roughly 1.7%, both coming off their worst weekly losses since April. The Dow Jones Industrial Average increased 0.2%.

Still, the political shock could inject more volatility into an already battered stock market, distracting focus from this week's flood of earnings and key inflation release. That could prompt a light unwinding of recent "Trump trade" bets on assets seen as benefiting from a second Trump presidency, such as bitcoin, bank stocks, and higher US bond yields. The yield on the benchmark 10-year Treasury slipped on Monday.

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