PARIS (Reuters) – The New York Stock Exchange opened in mixed order on Monday after a recent sell-off in stocks, particularly in the technology sector, as investors awaited decisions this week by the U.S. Federal Reserve and results from several major stock companies.

In early trading, the Dow Jones index lost 83.99 points, or 0.21 percent, to 40,505.35 points. The broader Standard & Poor’s 500 gained 0.18 percent to 5,469.32 points.

The Nasdaq Composite gained 0.52%, or 89.54 points, to 17,447.42.

The upward movement on the S&P 500 and the Nasdaq continued on Monday after the indices rebounded by more than 1% on Friday following the publication of encouraging US inflation figures.

The S&P 500 and the Nasdaq are still far from having recovered all the losses suffered following the publication of the results of technology groups such as Alphabet and Tesla, while the financial statements of Apple (-0.33%), Meta (+0.44%) and Amazon (+0.57%) among others are expected this week.

The “tech” index (+0.52%) and that of semiconductors (+1.51%) are in the green, also recovering, with Tesla (+3.96%) now included in Morgan Stanley’s preferred list in the American automobile sector.

“As the results of some large companies are still expected this week, market volatility is likely to continue,” UBS analysts warn.

Concerns about the dominance of tech giants in indices have prompted investors to move out of those stocks and into lagging segments like mid- and small-caps, which are expected to benefit from a low interest rate environment.

The Russell 2000 index of small caps (+1.66%) posted its third consecutive weekly gain on Friday and is close to its highest levels seen more than two and a half years ago.

“The recent pullback (of mega-caps) creates, in our view, an opportunity to re-enter, particularly in companies with strong visibility on earnings growth,” write UBS analysts.

The market is also betting on a rate cut by the Fed in September and expects the Fed to provide guidance in this regard on Wednesday at the end of its monetary policy meeting.

In corporate news, McDonald’s was flat (+0.13%) after reporting an unexpected drop in quarterly revenue. The fast food chain, however, reaffirmed its full-year operating margin forecast.

Abbott Laboratories fell 4.77% after a court ordered the company to pay $495 million in damages over claims its special infant formula for premature babies caused intestinal disease.

Crypto asset groups Coinbase (+4.80%), Bitfarms (+4.46%) and Riot Platforms (+5.80%) are in the green after the Republican candidate for the American presidency, Donald Trump, promised more favorable regulation for the bitcoin sector.

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(Written by Claude Chendjou, edited by Sophie Louet)

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