U.S. stocks rose slightly as investors looked to ride upbeat sentiment pegged to a United States and European Union trade agreement.
Summary
- Stocks opened higher on Monday, with the benchmark indexes Dow Jones Industrial Average, S&P 500 and Nasdaq all up.
- Market is upbeat amid a trade deal between the United States and European Union.
- The week will be punctuated by Big Tech earnings, Federal Reserve meeting and key data releases.
While the Dow Jones Industrial Average hovered 30 points down, the benchmark index S&P 500 added 0.13% to begin the week up. Meanwhile, Nasdaq gained 0.34% to extend its upside following a run to a record high, with the index helped by Wall Street’s reaction to quarterly earnings reports.
Overall, stocks opened Monday bullish on the back of positive news that the U.S. and EU have agreed to a major trade deal. That sets the stage for a huge week, with the main things to watch including Big Tech earnings, the two-day Federal Reserve meeting, economic data releases and the Aug. 1 tariffs deadline.
While Dow, S&P 500 and Nasdaq eye more gains, cryptocurrencies are looking to bounce further. Bitcoin (BTC) however continues to consolidate below $119k as Ethereum (ETH) targets the $4,000 mark.
Meanwhile, Treasury yields hovered little changed as the Fed’s meeting and inflation data come into focus. The 10-year Treasury yield was at 4.39% and the 2-year yield at 3.92%.
U.S.-EU agree trade deal
Global trade has remained a key factor in the market since the “Liberation Day” tariffs salvo by President Donald Trump.
Stocks have seesawed and heaved since, although investors have adopted a largely bullish stance following key deals and agreements. Recently, it was a Japan-U.S. deal that buoyed markets, and the latest development on this front saw the same reaction on Wall Street.
Notably, the U.S. and European Union have agreed to a trade pact that outlines a baseline 15% tariff on most goods from the EU, with this half of the 30% levy President Donald Trump had threatened the bloc if a deal hadn’t been reached by Aug. 1. It also includes a $750 billion commitment by the EU to purchase U.S. energy and $600 billion investment.
The US and Japan deal also included a $550 billion investment commitment by Tokyo.
As investors weigh the EU deal, part of the focus will be on U.S.-China trade talks happening in Stockholm, with earlier reports indicating an agreement that first pushes the Aug. 12 deadline further by another 90-days.
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