Market Update: S&P 500 and Nasdaq Edge Up Ahead of Big Tech Earnings

In a cautious trading session on Monday, the S&P 500 and Nasdaq Composite saw modest gains as investors prepared for a week filled with significant earnings reports from major technology companies. Market participants are also closely monitoring the U.S. Federal Reserve's policy announcement scheduled for Wednesday, which could influence future market movements. Despite a disappointing earnings report, McDonald's shares rose by 3.74%, highlighting a divergence in market reactions. While McDonald's managed to buck the trend, companies that fell short of second-quarter earnings expectations typically experienced an average stock price decline of 3.8% in the days leading up to their results, a notable increase from the five-year average drop of 2.3%. This trend underscores the heightened sensitivity of investors to earnings performance in the current economic climate. In the tech sector, Apple has launched the first version of its Apple Intelligence software for registered developers, although it may not be included in the upcoming iPhone release. Meanwhile, Bitcoin experienced a decline of over 1%, trading at $67,264 after reaching a peak of $69,982, following comments made by Republican Presidential candidate Donald Trump at the recent Bitcoin Conference. Amid these developments, Janus Henderson has advised investors to consider transitioning from money market funds to bond ETFs to capitalize on higher yields, especially as indications suggest the Federal Reserve may begin cutting interest rates later this year. Additionally, signs of weakening consumer demand are emerging in the automotive sector, raising concerns for Detroit's Big Three automakers.