Investing.com -- The S&P 500 jumped Monday, led by big tech ahead of the earnings from Apple later this week, and the Federal Reserve’s interest rate decision due Wednesday.
The S&P 500 rose 1.3%, the Nasdaq gained 1.3%, and the Dow Jones Industrial Average jumped 1.7% or 558 points.
Big tech rallies ahead of Apple earnings
Big tech including Alphabet (NASDAQ:GOOGL), Meta Platforms Inc (NASDAQ:META), and Meta Platforms (NASDAQ:META) rallied to lift the broader tech sector as investors awaited earnings from Apple.
Apple Inc (NASDAQ:AAPL) is expected to report results for its June quarter - typically a seasonally weak quarter for the company - on Thursday after the market closes, with many Wall Street eager for insight into iPhone sales amid reports of slowing demand.
Apple is also expected to announce its third-generation Apple Silicon chip later on Monday.
General Motors reaches tentative agreement with UAW
United Auto Workers and General Motors struck a deal Monday, ending a six-week-long strike at Detriot automakers, Bloomberg reported, citing unnamed sources.
The terms agreement are similar to the recent accord signed by Ford and Stellantis with the UAW, including wage hikes and cost of living allowances.
General Motors Company (NYSE:GM) was marginally higher intraday, while Ford Motor Company (NYSE:F) and Stellantis NV (NYSE:STLA) were in the red.
Treasury yields rise ahead of refinancing announcement, Fed meeting
Treasury yields rose on Monday as investors awaited the Treasury refunding announcement due Wednesday, which details its plans for note and bond sales.
The recent selloff in Treasuries that has pushed yields to multi-year highs - has been partly attributed by some to the increase in supply of Treasuries.
“For Q4, we expect that borrowing projections will be revised down to $745B from $850B in the first cut,” Jefferies said in a note.
As well as the refinancing announcement, the Federal Reserve’s interest rate decision on Wednesday will also draw close attention amid expectations for a rate pause.
McDonald’s, SOFI deliver on earnings stage
McDonald’s Corporation (NYSE:MCD) rose more than 2% after the fast-food maker reported quarterly results that beat analyst estimates on both the top and bottom lines as recent price hikes underpinned growth.
SoFi Technologies Inc. (NASDAQ:SOFI) also delivered better-than-expected quarterly results, and raised its full-year outlook as student loan refinance demand was better-than-expected. The stock cut gains to trade less than 1% higher.
ON Semiconductor weakest link in chip stocks, but Western Digital shines
ON Semiconductor Corporation (NASDAQ:ON) fell more than 15% after the chipmaker’s better-than-expected Q3 results were overshadowed by Q4 guidance that fell short of analyst estimates.
The company guided Q4 EPS in a range of $1.13 to $1.27 on revenue between $1.95B and $2.05B, well below Wall Street estimates of $1.36 and $2.18B respectively.
Western Digital Corporation (NASDAQ:WDC), however, jumped nearly 8% after its fiscal Q2 guidance and Q1 results topped estimates. The company announced plans to spinoff its flash memory business that will see the company split into two, with its hard-drive making business also becoming a stand-alone business.
The news of a spinoff comes talks to merge its flash-memory business with Kioxio fell through.