The tech sector made more strides higher on Monday, July 10, leading the Nasdaq to its second day of solid gains and lightening the mood on the rest of Wall Street.

The S&P 500 added 0.09% and the Nasdaq rose 0.38%. The Dow Jones Industrial Average dropped slightly, by 0.02%.

Tech stocks moved higher on Monday after driving markets to major gains on Friday, July 7. Sector gains boosted the Nasdaq by just more than 1% to close out Friday's session. The sector has been in rebound mode after a rough June -- the sector had pulled back that month from lofty heights achieved during the first several months of the year.

The FAANG stocks (Facebook Inc. (FB) - Get Report , Inc. (AMZN) - Get Report , Apple Inc. (AAPL) - Get Report , Netflix Inc. (NFLX) - Get Report and Alphabet Inc. (GOOGL) - Get Report , were each higher Monday. The stocks have taken a beating in recent weeks, beginning with their initial slide on June 9. The Technology Select Sector SPDR (XLK) - Get Report increased 0.69%. 

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"We made the case several weeks ago that tech was due for a rest, but not a major top. Over the last month, technology is down [roughly] 4%, yet the S&P is essentially flat, suggesting there is underlying strength," said Jonathan Krinsky, chief market technician at MKM Partners, in a note. "There has been no damage done and if anything, it has now re-set expectations heading into earnings season."

This bull market is dangerous for 10 reasons, said Doug Kass over on our premium site for investors, RealMoney. Get his insights with a free trial subscription to RealMoney.

Federal Reserve Chair Janet Yellen heads to Capitol Hill in the coming week and Wall Street will be paying close attention to her assessments of the U.S. economy and how it might be affected by monetary-policy tightening. Yellen is set to deliver her semiannual testimony on monetary policy to the House Financial Services Committee on Wednesday, July 12, at 10 a.m. ET, and then to the Senate Banking Committee on Thursday, July 13, at 10 a.m. ET.

In its semiannual monetary policy report delivered before Yellen's testimony, the Federal Reserve said it expects "gradual" increases in the federal funds rate and said it's likely to start trimming reinvestment of proceeds from in its fixed-income portfolio later this year. The report was released on Friday. 

Yellen "could face some grilling as to why she is raising rates when the economy is still quite slow and inflation is nowhere to be seen," Euler Hermes North America chief economist, Dan North, told TheStreet. "The answer is, 'It's not inflation today -- it's inflation tomorrow.' It takes three to five quarters for changes in monetary policy to fully affect the economy, and with unemployment less than 4.5%, inflationary pressures are surely on the Fed's mind."

Hawkish talk from the Fed has increased recently, with several members expressing confidence that the U.S. could withstand the slow withdrawal of some stimulus measures set up in the wake of the 2008 financial crisis. In minutes from a June policy meeting, members discussed starting to unwind the $4.5 trillion in bonds on its balance sheet and the possibility of another rate hike before the year is out.

Crude oil prices rose on Monday on news Nigeria and Libya could participate in production cuts agreed upon by Organization of Petroleum Exporting Countries after the two were invited to attend a meeting later in July. Nigeria and Libya had been exempted from the OPEC agreement. Major oil-producing countries are set to meet to discuss current production limits on July 24. 

West Texas Intermediate crude oil was up 0.4% to settle at $44.40 a barrel on Monday. 

Tesla Inc. (TSLA) - Get Report   rose by less than 1% on Monday after CEO Elon Musk tweeted photos on Saturday of the first Model 3 ever produced. Musk said the first Model 3 had come off the production line and was now going through final checks. The first car will go straight into Musk's garage as a 46 th birthday present, he said.

The CEO said last week, a week in which the stock fell more than 17% on concerns over poor registration data in its home market of California and questions over its bullish production targets, that the first Model 3s would be on the roads in late July.

Abercrombie & Fitch Co. (ANF) - Get Report slumped 21% after confirming that it had ended buyout talks. The company said in a statement that "the A&F Board of Directors determined that the best path to enhance value for stockholders is the rigorous execution of our business plan."

The Wall Street Journal reported earlier that discussions with possible buyers have stalled and talks have since ended. Abercrombie had said in May that it was in "preliminary discussions with several parties." 

Amazon Prime Day kicks off at 9 p.m. ET on Monday and runs through July 12 at 3 a.m. Amazon said it will be offering new deals every five minutes. In-store deals for Prime Day started early on July 5 and will be available through July 11. Some analysts project sales of between $800 million and $1 billion for Amazon's third Prime Day event.

Abercrombie's failed deal talks and Amazon's Prime Day hurt the retail sector on Monday. Best Buy Co. Inc. (BBY) - Get Report , The Gap Inc. (GPS) - Get Report , Dick's Sporting Goods Inc. (DKS) - Get Report , Guess? Inc. (GES) - Get Report , Express Inc. (EXPR) - Get Report , American Eagle Outfitters (AEO) - Get Report , and Urban Outfitters Inc. (URBN) - Get Report were all lower. The S&P Retail SPDR ETF (XRT) - Get Report dropped 2.2%. 

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Eat, Drink and Talk Money with Jim Cramer

Meet Jim Cramer at an exclusive reception at his Bar San Miguel in Brooklyn, N.Y., on Tuesday, July 25, from 6:30 p.m. To 9 p.m.

The evening will start with a screening of Jim's CNBC show Mad Money. Afterwards, Jim will join the party fresh off of the CNBC set to mingle, take photos and answer your investing questions.

Tickets include dinner, drinks and an autographed copy of Jim's book Get Rich Carefully.

Click here for more information or to buy tickets.

Where: Bar San Miguel, 307 Smith St., Brooklyn, N.Y.

When: Tuesday, July 25, 6:30 p.m. to 9 p.m.