Investors watch Wall Street’s major market averages trade higher on Monday, as they brace for big tech earnings and the Federal Reserve’s policy decision, which are both scheduled to land this week.
The blue-chip Dow (DJI) advanced 0.1%, the benchmark S&P 500 (SP500) was up 0.4%, and the tech focused Nasdaq Composite (COMP:IND) climbed by 0.5%.
From a sector point of view, 10 of the 11 S&P segments are higher, with Consumer Discretionary at the top of the leaderboard. At the same time, the worst performing sector on the session is Energy, with oil (CL1:COM) down 1%.
The Treasury market has noticed limited moves. The shorter end U.S. 2 Year Treasury yield (US2Y) was flat at 4.38%. At the same time, the longer end U.S. 10 Year Treasury yield (US10Y) moved down by 2 basis points to 4.17%.
See how other yields trade across the entire yield curve here.
The economic calendar is light, with just the July Dallas Fed manufacturing survey arriving. The Dallas Fed manufacturing survey slipped deeper into the red in July, falling to -17.5 from 15.1 in June.
The headliner for the week will be the Fed’s monetary policy decision, which slated for Wednesday. It is widely expected that the Fed will hold rates steady.
“Clearly with the Fed likely to start an easing cycle soon, the FOMC has the potential to be a big event, but the likelihood is that they will simply signal a rate cut which is a reasonable baseline for September without pre-committing. So it may not be hugely market moving,” Deutsche Bank’s Jim Reid said.
Tech stocks will also be on the radar, as giants like Microsoft (MSFT), Meta Platforms (META), Apple (AAPL) and Amazon (AMZN) are set to report in the coming days. “Their results will be a huge driver with some nerves after Tesla and Alphabet disappointed last week,” Reid added.
As for stocks that are on the move, shares of McDonald’s Corporation (MCD) traded higher, despite reporting negative global comparable sales growth for Q2 and warning that consumers have become more discretionary, especially on the lower end of the income scale.
At the same time, On Semiconductor (ON) shares surged 13.5%, exhibiting its best single-day performance of the year after reporting earnings.
