The Nasdaq index remains almost unchanged, with a net change of 0.10% at the time of writing. However, the bearish outlook remains unchanged.
Investors focused squarely on this week’s Federal Reserve meeting, where policymakers are expected to hike interest rates on Monday as growth stocks rebounded from the April crash.
The shares of Amazon.com fell 2.3%, adding to Friday’s 14% drop after a dismal earnings report.
iPhone maker Apple faces a possible hefty fine following allegations by EU antitrust authorities that it restricted competitors’ access to its mobile wallet technology, causing its shares to fall 1.7%.
S&P 500 telecom services led the rise, with nine of the 11 major sectors up.
Thomas Hayes, chairman of Great Hill Capital in New York, said, “Until the Fed speaks this week, the market will be without much direction or clarity.”
Markets expect the Fed to raise rates aggressively through at least the summer, with a 92.8% chance of a 50 basis point hike on Wednesday when the decision is released.
The market will be watching Fed Chair Jerome Powell’s press conference closely for updates on interest rates and the balance sheet shrinking. However, no economic or point forecasts will be released at this meeting.
Nasdaq index technical analysis:
The Nasdaq index remains bearish with no net change compared to Friday’s price close. The key moving averages on the 4-hour chart point to the downside.