Investors look to the Federal Reserve and earnings as Wall Street closes practically flat.

U.S. equities fluctuated on Monday and closed about steady as traders braced for the Federal Reserve's predicted rate hike this week and earnings from several large-cap growth businesses.

Among the major S&P sectors, the S&P 500 technology (S5INFT) and consumer discretionary (S5COND) sectors saw the largest drops.

Michael O'Rourke, chief market strategist at JonesTrading in Stamford, Connecticut, stated that the current situation is one of "waiting for all those factors to play out."

"Clearly, the tech names continue to show some signs of weakening. Most likely, people are simply forgoing some risk in favour of profits."

At the conclusion of its two-day monetary policy meeting on Wednesday, the Fed is anticipated to announce a rate increase of 75 basis points, effectively terminating the support provided to the American economy during the pandemic.

Following the announcement, Chairman of the Fed Jerome Powell's remarks will be crucial. Investors have expressed concern that a rapid pace of rate increases could push the country into a recession.

With around 170 S&P 500 businesses publishing results this week, it's anticipated to be the busiest week of the second quarter reporting period. Apple Inc. (AAPL34) and Amazon.com Inc. (AMZNC) are scheduled to report on Thursday, while Google parent Alphabet (GOOG) and Microsoft Corp (MSF0) are expected to report on Tuesday.

Preliminary figures show that the Nasdaq Composite (IXIC) dropped 50.70 points, or 0.43 percent, to conclude at 11,783.41 while the S&P 500 (SPX) gained 4.95 points, or 0.13 percent, to end at 3,966.58 points. The DJI increased 85.05 points, or 0.27 percent, to reach 31,984.34 on the Dow Jones Industrial Average.

IBES figures from Refinitiv predict that S&P 500 earnings will have increased 6.1 percent from the same quarter a year ago. Investors have expressed concern about how inflation, currency challenges, and continuing supply chain problems for corporations may affect them.

Additionally this week, Thursday's advance second-quarter gross domestic product data is expected to show a decline after the U.S. economy shrank in the first three months of the year.

Due to weaker gold prices and inflationary pressures, Newmont Corp. (N1EM34) lost value when the miner increased its annual cost prediction and failed its second-quarter profit target.