Megacaps lift Nasdaq, S&P 500 ahead of Big Tech earnings, Fed verdict

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July 29 - The Nasdaq and the S&P 500 rose on Monday, buoyed by megacap stocks as investors awaited Big Tech results, a Federal Reserve policy decision and crucial labor numbers this week.

The S&P 500 Consumer Discretionary , index led sectoral gains with a 0.9% rise, boosted by a 4.4% jump in Tesla's , shares after Morgan Stanley added the EV maker's stock to its U.S. autos list as a"top pick". The next test for markets are earnings from Microsoft, Meta, Apple and Amazon.com, starting on Tuesday, which investors will watch to gauge if the AI-led equity rally has room to grow.

The Russell 2000 small-cap index , was up 0.1% after a three-week winning streak, just shy of levels last seen more than two-and-a-half years ago. A slew of employment reports this week, including the Non-farm Payrolls, will be scrutinized for insight into a somewhat easing labor market.

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