US Stocks trade higher ahead of FOMC, Tech Earnings

Wall Street saw modest gains on Monday as investors navigated a quiet trading day ahead of pivotal events this week. The Dow Jones Industrial Average inched up 0.1%, the S&P 500 rose 0.4%, and the Nasdaq Composite climbed 0.5%.

Market participants are keenly focused on the Federal Reserve’s interest rate decision on Wednesday and the upcoming earnings reports from tech giants like Microsoft, Meta, Apple, and Amazon. While a rate hike is unlikely, investors will scrutinize the Fed’s forward guidance for clues on potential future monetary policy moves.

Tech stocks have been under pressure following disappointing results from Tesla and Alphabet, and this week’s earnings will be crucial for determining the sector’s trajectory. Outside of tech, consumer discretionary stocks led gains, while energy lagged as oil prices declined. The Treasury market remained relatively calm, with yields showing minimal movement.

McDonald’s bucked the trend, trading higher despite a decline in global comparable sales and cautious consumer spending outlook. On the other hand, On Semiconductor surged 13.5% after reporting strong earnings. Monday’s economic data is light, with the Dallas Fed manufacturing index contracting further in July.