(Bloomberg) — U.S. equities turned higher, extending gains to record highs as investors weighed the outlook for growth at the start of a busy week of big-tech earnings and policy updates.
Tesla Inc. was among the stocks pushing the benchmark index higher, climbing for the first time in four sessions ahead of its earnings release due after the close of trading. Other megacaps set to report later this week including Apple Inc., Amazon.com Inc. and Facebook Inc. also were among the biggest contributors to the index’s gain.
While a positive start to the earnings season helped push equities to all-time highs last week, stocks had wavered early Monday as some investors remain worried about the pace of economic growth and inflation. Concern also has been mounting that the Covid-19 delta variant will derail the recovery. The real yield on U.S. 10-year debt touched a record low ahead of this week’s Federal Reserve meeting, at which officials will likely discuss the outlook for stimulus.
“We’re heading into a very eventful week with big tech earnings and a Fed meeting,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. “The market showed how resilient it was last week, with the impressive bounce-back from the sustained selling on Monday, but we expect more caution as all eyes (and ears) turn to the Fed.”
Read more: Whipsawed Bond Traders Hunker Down for the Return of the Fed
West Texas Intermediate crude declined below $72 a barrel. The Bloomberg Commodity Index rose for a fifth day.
Trade tension is on the radar too. China lashed out at U.S. policies in a tense start to high-level talks in Tianjin, declaring the relationship between the world’s two largest economies in a “stalemate.”
Elsewhere, Bitcoin climbed toward $40,000, extending recent gains amid speculation that Amazon may be considering accepting the digital currency as a method of payment. Cryptocurrency-linked stocks including MicroStrategy Inc. and Coinbase Global Inc. also rallied.
Here are some key events to watch this week:
Tesla, Alphabet, Apple, Facebook, Amazon report earnings this weekFederal Reserve policy meeting concludes WednesdayU.S. GDP data are due Thursday
These are some of the main moves in markets:
The S&P 500 rose 0.1% as of 11:46 a.m. New York timeThe Nasdaq 100 was little changedThe Dow Jones Industrial Average was little changedThe Stoxx Europe 600 was little changedThe MSCI World index was little changed
The Bloomberg Dollar Spot Index fell 0.3%The euro rose 0.3% to $1.1810The British pound rose 0.6% to $1.3827The Japanese yen rose 0.2% to 110.30 per dollar
The yield on 10-year Treasuries was little changed at 1.28%Germany’s 10-year yield was little changed at -0.42%Britain’s 10-year yield declined one basis point to 0.57%
West Texas Intermediate crude fell 0.5% to $71.73 a barrelGold futures fell 0.1% to $1,803.60 an ounce
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.