Tech Stocks Gain With Earnings, Fed in Focus: Markets Wrap

(Bloomberg) — Gains in megacap technology stocks were propping up the S&P 500 as it hovered around a record high on Monday, with investors weighing the outlook for growth at the start of a busy week of earnings and policy updates.

Tesla Inc., which reports its results after the close of trading on Monday, was among those providing the most support, climbing for the first time in four sessions. Other S&P 500 heavyweights set to report later this week including Apple Inc., Amazon.com Inc. and Facebook Inc. also buoyed the index.

While a positive start to the earnings season has helped push equities to all-time highs, stocks fluctuated between gains and losses on Monday as some investors remain worried about the pace of economic growth and inflation. Concern also has been mounting that the Covid-19 delta variant will derail the recovery. The real yield on U.S. 10-year debt touched a record low ahead of this week’s Federal Reserve meeting, at which officials will likely discuss the outlook for stimulus.

“We’re heading into a very eventful week with big tech earnings and a Fed meeting,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “The market showed how resilient it was last week, with the impressive bounce-back from the sustained selling on Monday, but we expect more caution as all eyes (and ears) turn to the Fed.”

Read more: Whipsawed Bond Traders Hunker Down for the Return of the Fed

West Texas Intermediate crude declined below $72 a barrel. The Bloomberg Commodity Index rose for a fifth day.

Trade tension is on the radar too. China lashed out at U.S. policies in a tense start to high-level talks in Tianjin, declaring the relationship between the world’s two largest economies in a “stalemate.”

Elsewhere, Bitcoin climbed toward $40,000, extending recent gains amid speculation that Amazon may be considering accepting the digital currency as a method of payment. Cryptocurrency-linked stocks including MicroStrategy Inc. and Coinbase Global Inc. also rallied.

Here are some key events to watch this week:

Tesla, Alphabet, Apple, Facebook, Amazon report earnings this weekFederal Reserve policy meeting concludes WednesdayU.S. GDP data are due Thursday

These are some of the main moves in markets:

Stocks

The S&P 500 was little changed as of 12:51 p.m. New York timeThe Nasdaq 100 was little changedThe Dow Jones Industrial Average was little changedThe MSCI World index fell 0.2%

Currencies

The Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.3% to $1.1812The British pound rose 0.6% to $1.3826The Japanese yen rose 0.2% to 110.32 per dollar

Bonds

The yield on 10-year Treasuries was little changed at 1.28%Germany’s 10-year yield was little changed at -0.42%Britain’s 10-year yield declined one basis point to 0.57%

Commodities

West Texas Intermediate crude fell 0.8% to $71.52 a barrelGold futures fell 0.1% to $1,803.20 an ounce

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