US stocks closed mostly flat on Monday to kick off a big week filled with a Federal Reserve rate decision, the jobs report, and Big Tech earnings.
The Dow Jones Industrial Average (^IXIC) closed down 0.1%, coming off a surge of over 650 points for the blue-chip index on Friday. The S&P 500 (^GSPC) gained nearly 0.1% while the tech-heavy Nasdaq Composite (^IXIC) rose just above the flatline.
Stocks kicked off the week on the front foot after surging on Friday, as investors welcomed a promising inflation reading that cemented bets for interest-rate cuts. But after a volatile run of sessions and a huge tech sell-off, the watch is on for surprises that could put the fragile rally to the test.
No move is expected from the Federal Reserve at the end of its meeting on Wednesday, despite signs the US economy and inflation have hit a sweet spot. Many on Wall Street see other reasons for the central bank to wait until September to act.
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The July nonfarm payrolls report that follows on Friday — expected to show cracks in the jobs market — will play into after-the-fact calculations on timing and depth of rate cuts in 2024.
Looming earnings this week from Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Meta (META) also have investors on alert, given the stock wipeout that followed the first pair of “Magnificent Seven” results.
On Monday shares of EV giant Tesla (TSLA) gained more than 5% after Morgan Stanley’s Adam Jonas designated the stock a ‘top pick.’ McDonald’s (MCD) stock rose despite an earnings miss across the board as consumers pulled back on spending at the fast food chain.
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