Wall Street Flat as Investors Await Fed Decision and Big Tech Earnings

Major U.S. indices traded sideways on Monday, reflecting a cautious mood among investors. The Dow Jones Industrial Average fell 91.50 points, or 0.2%, to 49,139.21, while the Nasdaq Composite dipped 49.96 points, or 0.2%, to 24,786.64, and the S&P 500 declined 4.01 points, or 0.1%, to 7,161.07. The choppy price action is primarily attributed to geopolitical uncertainty in the Middle East. Peace talks between the U.S. and Iran stalled over the weekend, leaving traders unclear on the status of nuclear negotiations and the security of the Strait of Hormuz, despite reports of Iranian proposals to end the war. Attention is now pivoting to a high-stakes week. Five of the "Magnificent Seven" are scheduled to report quarterly earnings, and the Federal Reserve will announce its latest monetary policy decision on Wednesday. While rates are widely expected to remain steady, the accompanying statement is viewed as a critical signal for the future trajectory of interest rates. Sector performance was fragmented. The Philadelphia Semiconductor Index tumbled 2.2%, erasing gains from a previous record close. Gold-related equities also weakened, with the NYSE Arca Gold Bugs Index falling 1.7% in tandem with lower precious metal prices. Conversely, biotechnology and financial stocks provided some support to the broader market. Internationally, markets were mixed, with Japan's Nikkei 225 rising 1.4% while European indices saw marginal movements. In the treasury market, the benchmark ten-year yield remained stable, trading at 4.316%.