The S&P 500 rose Monday as investors awaited a batch of key earnings reports and a major policy decision from the Federal Reserve.
The Dow Jones Industrial Average gained 0.39%. The S&P 500 rose 0.22%, while the Nasdaq Composite dipped 0.14%.
Energy was among the two leading advancing groups in the S&P 500, up more than 1%, after oil and gasoline futures touched a three-month high Monday. Shares of Halliburton were higher by about 2%, while Devon Energy was up by nearly 1%.
Communication services also gained more than 1% as Google-parent Alphabet shares rose 2%, while Meta Platforms added 0.7%.
Stocks are coming off a 10-day advance for the Dow Jones Industrial Average. The blue-chip Dow eked out a 2.51-point gain on Friday, marking its longest rally since 2017. The S&P 500 finished the week up by 0.7%, while the Nasdaq Composite fell 0.6% in the same period.
Earnings from some 150 companies in the S&P 500 this week plus the Federal Reserve’s last policy meeting until September could try the recent rally. Investors anticipate the Fed will increase rates by a quarter percentage point at the conclusion of its meeting on Wednesday. They will be listening to comments by Chair Jerome Powell to get a sense of the central bank’s position on what happens next as it tries to navigate a soft landing for the economy.
About 40% of the Dow and 30% of the S&P 500 will give their financial updates during the week, including Alphabet, Microsoft and Meta. Several big pharma companies are getting ready to report and it’s a big week for industrial companies and big oil as well.
“Absent an event that might change the view, I think the bias is higher for now,” said Ross Mayfield, investment strategy analyst at Baird. “At some point, the market looks a little overbought and sentiment looks a little aggressive. But in the meantime, actually, I think the bias is still higher.”
Traders will also watch for the personal consumption expenditures index, the Fed’s preferred inflation gauge, which is due at the end of the week.
— CNBC’s Robert Hum contributed reporting.