Megacap growth stocks, led by Apple and Tesla, lifted the tech-heavy Nasdaq to a higher close on Monday, while the Dow and S&P 500 also posted slight gains in light pre-holiday trading. Investors are awaiting U.S. labor market data due later this week for insights into the interest rate outlook. Apple climbed 2.9%, Microsoft rose 2%, and Amazon.com ended 2.2% higher, boosting the Nasdaq. According to Goldman Sachs Research, the economy still looks very healthy, forecasting U.S. economic growth above 2% this year. Shares of Tesla surged 6.1% ahead of second-quarter vehicle delivery data, despite Wells Fargo's concerns about slowing growth in deliveries and potential price cuts.

Semiconductor makers Advanced Micro Devices and Arm Holdings saw drops of 2.8% and 2.9%, respectively, pulling the Philadelphia SE Semiconductor Index close to a one-week low. Real estate stocks, often seen as a bond proxy, dropped almost 1% as U.S. Treasury yields jumped to multi-week highs. However, higher yields boosted bank profits, with the S&P 500 Banks Index jumping to its highest in over a month. JP Morgan Chase shares hit an all-time high after the bank increased its dividend and authorized $30 billion in share buybacks. Trading volumes were thin, with the market set to shut on Thursday for U.S. Independence Day.