Stock Market Today: Dow racks up swashbuckling gains as big tech shows strength

Investing.com -- The Dow racked up gains to close higher Monday, as big tech led the broader move higher ahead of quarterly earnings from Apple due later this week, and the Federal Reserve’s interest rate decision slated for Wednesday.

The Dow Jones Industrial Average jumped 1.6% or 511 points, and the S&P 500 rose 1.2%, the Nasdaq gained 1.2%.

Big tech rallies ahead of Apple earnings

Big tech including Alphabet (NASDAQ:GOOGL), Meta Platforms Inc (NASDAQ:META), and Meta Platforms (NASDAQ:META) rallied to lift the broader tech sector as investors awaited earnings from Apple.

Apple Inc (NASDAQ:AAPL) is expected to report results for its June quarter - typically a seasonally weak quarter for the company - on Thursday after the market closes, with many Wall Street eager for insight into iPhone sales amid reports of slowing demand.

Apple is also expected to announce its third-generation Apple Silicon chip later on Monday.

General Motors reaches tentative agreement with UAW

United Auto Workers and General Motors struck a deal Monday, ending a six-week-long strike at Detriot automakers, Bloomberg reported, citing unnamed sources.  

The terms agreement are similar to the recent accord signed by Ford and Stellantis with the UAW, including wage hikes and cost of living allowances.

General Motors Company (NYSE:GM) closed higher, while Ford Motor Company (NYSE:F) and Stellantis NV (NYSE:STLA) ended the day in the red.

Treasury yields rise ahead of refinancing announcement, Fed meeting

Treasury yields rose on Monday as investors awaited the Treasury refunding announcement due Wednesday, which details its plans for note and bond sales.  

The recent selloff in Treasuries that has pushed yields to multi-year highs - has been partly attributed by some to the increase in supply of Treasuries.  

Ahead of the announcement, the Treasury Department lowered its net borrowing estimate for the October through December quarter to $776 trillion from the $852 billion amount it had forecast in late July. 

As well as the refinancing announcement, the Federal Reserve’s interest rate decision on Wednesday will also draw close attention amid expectations for a rate pause.

McDonald’s, SOFI deliver on earnings stage

McDonald’s Corporation (NYSE:MCD) rose more than 2% after the fast-food maker reported quarterly results that beat analyst estimates on both the top and bottom lines as recent price hikes underpinned growth.

SoFi Technologies Inc. (NASDAQ:SOFI) also delivered better-than-expected quarterly results, and raised its full-year outlook as student loan refinance demand was better-than-expected. The stock cut the bulk of its gains intraday, but closed 1% higher.    

ON Semiconductor weakest link in chip stocks, but Western Digital shines

ON Semiconductor Corporation (NASDAQ:ON) fell 21% after the chipmaker’s better-than-expected Q3 results were overshadowed by Q4 guidance that fell short of analyst estimates.

The company guided Q4 EPS in a range of $1.13 to $1.27 on revenue between $1.95B and $2.05B, well below Wall Street estimates of $1.36 and $2.18B respectively.

Western Digital Corporation (NASDAQ:WDC), however, jumped 7% after its fiscal Q2 guidance and Q1 results topped estimates. The company announced plans to spinoff its flash memory business that will see the company split into two, with its hard-drive making business also becoming a stand-alone business.

The news of a spinoff comes talks to merge its flash-memory business with Kioxio fell through.