US stocks closed mixed on Monday as investors geared up for a crucial week of earnings reports dominated by Big Tech companies.
The Dow Jones Industrial Average dipped slightly by 0.04% to 44,323.07 points. In contrast, the S&P 500 edged up 0.14% to 6,305.6, and the tech-heavy Nasdaq Composite Index rose 0.38% to 20,974.17.
Sector performance was uneven. Communication services led the gains with a 1.9% rise, while consumer discretionary and materials also advanced. However, energy and health stocks fell by 0.96% and 0.61%, respectively.
Investors are focusing on the earnings season, especially with major tech companies set to report their results this week. So far, 62 companies in the S&P 500 have reported earnings, with over 85% surpassing expectations, according to FactSet.
Verizon Communications’ shares surged about 4% after the company beat second-quarter expectations, lifting hopes for similarly strong results across the board. Steel producer Cleveland-Cliffs also posted solid earnings, boosting market sentiment.
Mega-cap tech giants, which have powered much of the recent market rally, were mostly higher. Alphabet led the group, rising 2.8% ahead of its earnings report on Wednesday. Broadcom climbed 1.72%, while Amazon and Meta Platforms each gained more than 1%. Apple and Microsoft saw modest increases, while Nvidia and Tesla slipped slightly. Notably, Tesla is also due to report earnings on Wednesday.
“Rarely do you injure yourself falling out of a basement window. With expectations so low in earnings, I think that the end result will end up being better than anticipated,” said Sam Stovall, chief investment strategist at CFRA Research, in an interview with CNBC. “That is encouraging for the market as well.”
On the policy front, US Commerce Secretary Howard Lutnick reaffirmed the August 1 deadline for implementing new tariffs, while US Treasury Secretary Scott Bessent emphasized that the administration is focusing on the quality of trade deals over the speed of negotiations.
