Wall Street Braces for Fed's Interest Rate Decision as Stocks Diverge

The stock market experienced a mixed performance on Monday, with the Dow Jones Industrial Average rising while the other major indexes traded lower. The impending Federal Reserve's interest rate decision on Wednesday loomed over Wall Street, as investors eagerly awaited the central bank's move.

Navigating the Shifting Tides: Investors Brace for the Fed's Next Move

Dow Jones Rises, Nasdaq and S&P 500 Decline

The Dow Jones Industrial Average managed to eke out a 0.7% gain, while the S&P 500 edged lower and the tech-heavy Nasdaq Composite moved down 0.5% in early trading. The divergence in performance reflects the market's uncertainty as investors await the Federal Reserve's interest rate decision.

Treasury Yields and Oil Prices Remain Steady

The 10-year Treasury yield held steady at 3.64%, while oil prices extended their rebound, with West Texas Intermediate futures rising 1% to around $69.40 per barrel. The stability in these key indicators suggests a cautious market sentiment as investors brace for the Fed's announcement.

ETFs Reflect the Mixed Sentiment

Among exchange-traded funds, the Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100 index, was down 0.5%, while the SPDR S&P 500 ETF (SPY) moved down less than 0.1% after the open, mirroring the broader market's mixed performance.

Apple Stumbles on Bearish iPhone 16 Demand Report

One notable loser on the stock market today was Apple (AAPL), which fell more than 3% after reports suggested that early demand for the new iPhone 16 is lagging behind last year's levels for the iPhone 15. The tech giant's shares are forming a V-shaped cup with handle pattern, with a 232.92 buy point.

Earnings Season Kicks Off with Key Releases

As the market awaits the Fed's decision, the earnings season is also starting to unfold, with FedEx (FDX), Darden Restaurants (DRI), and homebuilder Lennar (LEN) among the companies set to report their latest financial results this week. Darden Restaurants is trying to break out of a cup-with-handle base.

Nasdaq and S&P 500 Regain Bullish Footing

The Nasdaq Composite had a solid session on Friday, rising nearly 0.7% and ending the week back above its 50-day moving average, a bullish sign. The S&P 500 also rose 0.5%, pulling further clear of its 50-day line. The Dow Jones Industrial Average closed near its all-time high, up 0.7% on Friday.

Stocks to Watch: Costco, DoorDash, and Taiwan Semiconductor

Among the stocks to watch on the stock market today are Costco Wholesale (COST), DoorDash (DASH), and Taiwan Semiconductor Manufacturing (TSM). Costco is in the buy area above a 896.67 cup-base entry, while DoorDash is just above a cup-with-handle's 131.21 buy point. Taiwan Semiconductor is nearing a cup-with-handle's 175.45 entry, but fell 2.4% in early trading.

Magnificent Seven Stocks: Mixed Performance

The performance of the Magnificent Seven stocks, including Alphabet (GOOGL), Nvidia (NVDA), and Tesla (TSLA), was mixed in early trading. Alphabet rose 0.5%, Nvidia declined 1.6%, and Tesla fell 1.4%.

Dow Jones Leaders: Amazon and Microsoft Rebound

Among the Dow Jones components in the Magnificent Seven, Amazon (AMZN) shares reclaimed their 50-day line during last week's rally, but fell 0.5% on Monday morning. Microsoft (MSFT) shares are also back above their 50-day line and building a new base, rising 0.4% in early trading.As the market navigates the uncertainty surrounding the Federal Reserve's interest rate decision, investors will be closely watching the performance of key stocks and sectors, seeking opportunities amidst the shifting tides.