01:48 PM EDT, 07/29/2024 (MT Newswires) -- US equity indexes were mixed in choppy midday trading Monday as government bond yields extended declines after a regional manufacturing gauge deteriorated more than forecast.

The Nasdaq rose 0.4% to 17,428.8 and the S&P 500 up 0.3% to 5,473.6 while the Dow Jones Industrial Average was 0.1% lower at 40,569.5. All three indexes traded lower earlier in the session. All sectors, except energy and financials, rose intraday, with consumer discretionary and communication services leading the gainers.

Most Treasury yields kicked off Monday on a downbeat mood, with the 10-year slipping 2.4 basis points to 4.18%. The yields on most Treasury maturities ended lower last week as optimism around a September interest-rate cut got a lift after the Federal Reserve's preferred inflation gauge, the personal consumption expenditures index, showed moderation in June.

The focus in this week's economic calendar will be on the Fed's July interest-rate decision due Wednesday, according to a note from Stifel. While the Fed will likely leave rates unchanged for the eighth consecutive meeting, "investors will be looking closely at the statement and listening even closer to [Fed] Chair [Jerome] Powell's press conference for any indication or lean towards a rate cut in September."

In economic news Monday, the Dallas Fed's monthly manufacturing index fell to minus 17.5 in July from minus 15.1 in June, compared with expectations for minus 15.5 in a survey compiled by Bloomberg. The reading indicates a faster pace of contraction in the sector, in line with the Empire, Richmond, Kansas, and the S&P Global flash measures but in contrast with the Philadelphia Fed Index that pointed to expansion.

In company news, ON Semiconductor's (ON) fiscal Q2 results topped market estimates, and the outlook for the chipmaker's earnings for the ongoing three-month period matched analyst expectations at the midpoint. Shares soared 13% intraday, the top performer on the S&P 500 and the Nasdaq.

Quarterly results from Tesla (TSLA) and Alphabet (GOOG, GOOGL) disappointed investors last week, helping push the technology and communication services to the bottom of the sector charts and endangering the rally in the S&P 500 and the Nasdaq that began in November. Among the mega-cap earnings due this week, investors will especially watch out for Apple (AAPL), Amazon.com (AMZN), Microsoft (MSFT), and Meta Platforms (META).

FactSet's Q2 blended earnings estimate, which combines reported results with the remaining consensus estimates, currently implies an increase of 9.8% year-over-year for the S&P 500, indicating that results will likely trend higher, a note from D.A. Davidson said late Friday. The FactSet consensus estimate for S&P 500 constituents as of June 30 was for an increase of 8.8%. About 41% of S&P 500 companies have reported, including over 31% of the technology firms in the index.

West Texas Intermediate crude oil slumped 2.1% to $75.55 a barrel.

Gold slipped 0.2% to $2,375.92 an ounce, and silver dropped 1% to $27.75.