Earnings in Focus, with Microsoft, Apple, Amazon & Meta – US Market Wrap

Stocks rose ahead of major central bank decisions, key economic data, and earnings from four mega-caps valued at nearly $10 trillion.

Almost 300 shares in the S&P 500 rose. Following a rotation that pushed the Nasdaq 100 to the verge of a correction, big tech rallied, while small caps suffered. Microsoft, Meta Platforms, Apple, and Amazon’s results will be critical following an underwhelming start to the megacap reporting season. Federal Reserve officials are on the verge of lowering interest rates in the coming months, a move that Jerome Powell may signal Wednesday.

The S&P 500 remained near 5,465. A gauge of the “Magnificent Seven” megacaps rose 1%. The Russell 2000 index of smaller firms fell by 1.1%.
Tesla Inc. surged on a bullish Morgan Stanley call, while McDonald’s investors shrugged off a sales drop after executives promised to launch new promotions. Oil prices have fallen, and energy producers have followed suit.

Treasuries barely moved, heading for a third month of gains – the longest streak since 2021. The United States reduced its estimate for federal borrowing in the current quarter and projected a decline in its cash buffer by the end of the year. Companies are also rushing to debt markets to raise cash before the Fe