The S&P 500 ticked higher Monday as Wall Street geared up for a busy week of corporate earnings and looked ahead to a key policy announcement from the U.S. central bank.
The broad market index gained 0.08%, closing at 5,463.54, and the Nasdaq Composite advanced 0.07% to end at 17,370.20. The Dow Jones Industrial Average lost 49.41 points, or 0.12%, and closed at 40,539.93.
On Semiconductor advanced 11.5% after reporting better-than-expected earnings and revenue, making the stock Monday’s best performer in the broad market index. Tesla rose 5.6% after Morgan Stanley named the electric vehicle stock a top pick.
This week’s earnings slate will help determine whether tech stocks can bounce back from last week’s declines. Microsoft, Meta Platforms, Apple and Amazon are all set to report their quarterly results in the coming days.
Another key event this week will be the Federal Reserve meeting, with the central bank set to release a new policy statement on Wednesday. The Fed is not expected to cut its benchmark interest rate from the current range of 5.25% to 5.50% this week, but traders will be looking for clues as to how likely the central bank is to make a move at its September meeting.
“A market in motion tends to stay in motion — and that is what is encouraging investors at this point,” CFRA Research chief investment strategist Sam Stovall said.
Monday’s tepid moves are driven in part by optimism toward the remainder of second-quarter earnings, Stovall said. He expects a near-term digestion of gains in the broader market, however, citing its “very rich valuations.”
Monday’s moves come after a volatile week in the stock market. The S&P 500 dipped 0.8% to end last week, while the tech-heavy Nasdaq Composite fell 2.1%. However, the Dow rose 0.8% and the small-cap Russell 2000 rose 3.5%.