US stocks flat ahead of tech earnings, Fed

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Wall Street stocks ended little changed on Monday after a choppy session that opened a week packed with news, including earnings from major technology companies and a decision from the Federal Reserve.

Analysts say investors are adopting a wait-and-see approach as they await quarterly results from Microsoft, Apple and other tech giants, as well as a Federal Reserve decision on Wednesday.

The US central bank is expected to keep interest rates unchanged but may suggest a rate cut at its next meeting.

The Dow Jones Industrial Average closed the day down 0.1 percent at 40,539.93.

The broad S&P 500 index rose 0.1 percent to 5,463.54, while the technology-heavy Nasdaq Composite index gained 0.1 percent to 17,370.20.

Technology stocks, which dominated the market in the first half of 2024, have come under pressure in recent weeks, with investors shifting funds to other sectors on concerns about outsized valuations.

In light of this trend, technology stocks could suffer from “any signs of earnings or forecast disappointment” during earnings season, a Charles Schwab note said.

Among individual stocks, McDonald’s rose 3.3 percent despite missing analyst estimates as the company said it would double its efforts to win over value-conscious customers.

Analysts noted that the fast-food chain fell 17 percent ahead of the results, suggesting the negative news was priced into the market.

Also scheduled for this week is the US monthly employment report for July.

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