US: Stocks flat ahead of tech earnings, Fed decision
WALL Street stocks finished little changed on Monday following a choppy session to open a news-jammed week that includes major tech earnings and a Federal Reserve decision.
Investors are adopting a wait-and-see posture ahead of quarterly results from Microsoft, Apple and other tech giants, as well as a Wednesday Fed decision, analysts said.
The US central bank is expected to keep interest rates unchanged but could hint at a rate cut at its next meeting.
The Dow Jones Industrial Average finished down 0.1 per cent at 40,539.93.
The broad-based S&P 500 added 0.1 per cent at 5,463.54, while the tech-rich Nasdaq Composite Index also won 0.1 per cent at 17,370.20.
Tech shares have been under pressure in recent weeks after leading the market for the first half of 2024, with investors shifting funds to other sectors due to concerns about excessive valuations.
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In light of this trend, tech equities could be hammered by “any sign of disappointment in their numbers or guidance” during earnings season, said a note from Charles Schwab.
Among individual companies, McDonald’s gained 3.3 per cent despite missing analyst estimates as the company vowed to redouble efforts to win over value-focused consumers.
Analysts noted the fast-food chain had fallen 17 per cent prior to the results, suggesting the negative news was priced in.
This week’s agenda also includes a monthly US employment report for July. AFP
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