US Stock Market News: Dow, Nasdaq dragged by Apple, Alphabet, other megacap stocks ahead of Fed rate decision this week

US stock market news: Major U.S. stock indices fell on Monday as declines in technology and other megacap stocks weighed on as investors turned to a week of major events including central bank meetings and numerous earnings calls. Did.

The heavyweight tech sector (.SPLRCT) dropped 1.9% and energy (.SPNY) dropped 2.3%, the biggest drop of any S&P 500 sector. Shares of Apple (AAPL.O), (AMZN.O) and Google parent Alphabet (GOOGL.O), all due to report earnings later this week, fell.

More than 100 S&P 500 companies are due to report results this week, including central bank meetings in the US and Europe, as well as closely watched US employment data.

Keith Lerner, co-chief investment officer at Truist Advisory Services, said: “The market has risen significantly and trading is a little cautious heading into the week. This could be an inflection point for the whole market. There is a nature.

The Dow Jones Industrial Average (.DJI) fell 260.99 points (0.77%) to 33,717.09, the S&P 500 (.SPX) fell 52.79 points (1.30%) to 4,017.77, and the Nasdaq Composite (.IXIC) fell to 227.90. points fell. From 1.96% to 11,393.81.

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Rising US Treasury yields have put new pressure on tech stocks, which had rebounded in the year after a rough move in 2022.

Despite Monday’s decline, the S&P 500 performed well, posting its biggest January gain since 2019.

The U.S. central bank is seen raising the Fed’s interim money rate by 25 basis points at the end of Wednesday’s two-day policy meeting, after the Fed aggressively raised interest rates in 2022 to curb sharp inflation. I’m here.

Fed Chairman Jerome Powell’s press conference will be scrutinized as to whether the rate hike cycle may be coming to an end and how long rate hikes may continue.

“It’s probably one of the most important conferences since it all began,” said Samir Samana, senior global market strategist at Wells Fargo Investment Institute. The next he takes place in one or he two meetings can be a pause, so to speak. ”

Meanwhile, the European Central Bank is expected to make another big rate hike on Thursday.

Investors are also eyeing earnings reports amid concerns that the economy may be facing a recession. More than 140 companies have reported so far, according to Refinitiv IBES, and S&P 500 earnings are expected to fall 3% in the fourth quarter compared to the same period last year.

In company news, shares of Johnson & Johnson (JNJ.N) fell as the healthcare giant’s strategy to use bankruptcy to settle a multi-billion dollar lawsuit over allegations that talc products cause cancer It fell 3.7% after being overruled by a federal appeals court.

Losers outnumber gainers on the New York Stock Exchange by a ratio of 2.40 to 1. Losers dominated on the Nasdaq with a ratio of 2.08 to 1.

The S&P 500 hit five 52-week highs and no new lows. The Nasdaq Composite posted 67 new highs and 20 new lows.

About 10.6 billion shares were traded on US exchanges in the last 20 trading days, compared with an average of 11.2 billion shares per day.

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