S&P, Nasdaq at record highs as US-EU trade deal sparks optimism in pivotal week
At 9:39 a.m ET, Dow fell 0.10%, to 44,855.92. The blue-chip index was about 215 points away from its December 4 record high.
The S&P 500 rose 0.08% and the Nasdaq Composite gained 0.28%.
President Donald Trump and European Commission President Ursula von der Leyen unveiled a trade framework on Sunday, slashing EU import tariffs to 15%—half the previously threatened rate set for August 1.
The S&P 500 has gained more than 30% and the Nasdaq over 40% since their April lows.
Last week, a string of deals with major U.S. trade partners including Japan, Indonesia and the Philippines fueled robust gains on Wall Street.
But the market's remarkable rally faces a crucial test in the days ahead, as 'Magnificent Seven' heavyweights Meta, Microsoft, Amazon, and Apple prepare to report their earnings, potentially setting the tone for Wall Street.
Last week, Alphabet surprised Wall Street with a bold capital spending hike, reviving AI optimism, even as Tesla cast a shadow by warning of tough quarters ahead amid shrinking electric vehicle subsidies.
Wall St rises on US-EU trade deal prospects
Tesla rose 0.4% after the automaker signed a $16.5 billion deal to source chips from Samsung Electronics.
'This is about as busy as a week can get in the markets. This week could make or break that momentum in the near term. With four of the Magnificent Seven stocks reporting earnings, the tech sector has the potential to lead the market, either higher or lower,' said Chris Larkin, managing director, trading and investing, E*TRADE at Morgan Stanley.
The latest pact with the 27-member EU bloc has raised expectations that a global trade war could be averted, while other economies are scrambling to finalize agreements before the deadline.
The ongoing U.S.-China talks are expected to extend their fragile trade truce by another three months, while negotiations with India were still underway.
A key highlight of the week will be the Fed's two-day policy meeting starting Tuesday, with traders widely expecting the central bank to keep interest rates steady. As per the CME Group's FedWatch tool, odds for a September cut stand at 63%.
The meeting comes amid an aggressive campaign by the White House to pressure the Fed into lowering borrowing costs. Trump on Friday suggested Powell might be ready to lower interest rates.
Among a deluge of key economic indicators this week, attention will be on the Personal Consumption Expenditure report (PCE) - the Fed's preferred inflation measure - and non-farm payrolls data to gauge how tariffs have affected consumer prices and the labor market.
Ether-linked companies GameSquare and BTCS were up 4% each after Ethereum prices hit over a seven-month high.
Nike rose 2.1% after J.P. Morgan upgraded the stock to 'overweight' from 'neutral' and said investors should 'just buy it'.
Declining issues outnumbered advancers by a 1.23-to-1 ratio on the NYSE, while advancing issues outnumbered decliners by a 1.08-to-1 ratio on the Nasdaq.
The S&P 500 posted 13 new 52-week highs and one new low, while the Nasdaq Composite recorded 34 new highs and 21 new lows.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
an hour ago
- Express Tribune
Trump's remarks on stopping Pakistan-India war 'reopen old wounds' for Modi: PM Shehbaz
Listen to article Prime Minister Shehbaz Sharif said on Tuesday that every time US President Donald Trump talks about stopping the Pakistan-India war, Indian Prime Minister Narendra Modi's 'wounds are reopened'. "US President Donald Trump has repeatedly stated that we stopped the war. When the US president says that we stopped the Pakistan-India war, Modi's wounds are reopened," he said while inaugrating Pak Business Express and newly upgraded passenger facilities at the Lahore Railway Station. During his address, PM Shehbaz also paid tribute to Pakistan's Armed Forces for their resilience in the four-day conflict with India, which he described as 'short but highly dangerous.' He praised the military's technical superiority, the Air Force's internal innovations, and the Army's use of Al Fatah missiles. 'India believed Pakistan could only rely on nuclear deterrence, but conventional warfare supremacy has shattered that myth,' he said, reaffirming his commitment to the nation's security. He added that our nuclear assets are guarantors of national security, and the enemy does not dare to look at us with an evil eye. Prime Minister Muhammad Shehbaz Sharif addresses the inaugural ceremony of Pak Business Express at Lahore Railway Station. — Government of Pakistan (@GovtofPakistan) July 29, 2025 Speaking during the ceremony, PM Shehbaz expressed satisfaction with the station's visible transformation. 'From a warm welcome to well-mannered receptionists, renovated CIP lounges, upgraded passenger waiting rooms, and a fully refurbished train with modern European-style dining and sleeper berths, the change is truly gratifying,' he said. The PM hailed the digitisation of the ticketing system, the introduction of Wi-Fi facilities, and the outsourcing of services to improve efficiency and professionalism. "These services are for the common masses, not just a privileged class. This is a step towards turning railways into a best-in-class transportation system for both passengers and cargo freight," he added. PM Shehbaz commended the Minister for Railways Hanif Abbasi, the Railways secretary, and chairman for their efforts, while also acknowledging the previous contributions of former minister Saad Rafique, highlighting his "16 months of dedicated service" to the Railways department. He further stressed the need for punctuality and transparent outsourcing of railway land and services, aiming to turn these assets into profitable ventures for the nation. He also underscored the importance of continuing the transformation of Pakistan Railways across the country, from Peshawar to Karachi, Rohri, and Quetta. Prime Minister Muhammad Shehbaz Sharif visiting different sections of Pak-Business Express, newly inaugurated CIP Lounge, waiting halls and other facilities at Lahore Railway Station. — Government of Pakistan (@GovtofPakistan) July 29, 2025 'The Almighty guides and supports every sincere effort. This is just the first step; we must struggle with dedication and transparency to serve the people of Pakistan,' PM Shehbaz remarked. The PM concluded the ceremony with a pledge to transform Pakistan Railways into a modern, transparent, and people-centric institution. "Together we can make Railways a true engine of progress for Pakistan," he stated. Railways Minister Hanif Abbasi thanked the PM for his vision and leadership. He credited him for supporting the digitisation, outsourcing of services, and the introduction of a cashless payment system at railway stations. He also revealed that the Railways had earned Rs93 billion, installed escalators for differently-abled passengers, and improved cleanliness and punctuality across stations. The newly launched Pak Business Express will travel between Lahore and Karachi in 18 hours and 30 minutes, with an economy-class fare of Rs 5,100.
Business Recorder
2 hours ago
- Business Recorder
Oil prices rise 1% on trade war relief, US pressure on Russia
NEW YORK: Oil prices rose on Tuesday, extending the previous day's rally, on optimism that a trade war between the United States and its major trading partners was abating and as President Donald Trump ramped up pressure on Russia over its war in Ukraine. Brent crude futures were up 95 cents, or 1.36%, at $70.99 a barrel at 12 p.m. EDT (1600 GMT), having touched their highest since June 23, while U.S. West Texas Intermediate crude was at $67.70, up 99 cents, or 1.48%. Both contracts settled more than 2% higher in the previous session. The trade agreement between the United States and the European Union, while imposing a 15% import tariff on most EU goods, sidestepped a full-blown trade war between the two major allies that would have rippled across nearly a third of global trade and dimmed the outlook for fuel demand. Oil rises on US-EU trade deal 'There is definitely some optimism around the trade deals,' said Bob Yawger, director of energy futures at Mizuho. 'It's not perfect, especially for the Europeans, but it is better than it could have been by a long shot.' The agreement also calls for $750 billion of EU purchases of U.S. energy over the next three years, which analysts say the bloc has virtually no chance of meeting, while European companies are to invest $600 billion in the U.S. over Trump's second term. Top economic officials from the U.S. and China finished meetings in Stockholm that were aimed at resolving longstanding economic disputes and stepping back from an escalating trade war between the world's two biggest economies. Trump set a new deadline on Monday of '10 or 12 days' for Russia to make progress toward ending the war in Ukraine. Trump has threatened sanctions on both Russia and buyers of its exports unless progress is made. 'Oil prices rallied after President Trump said he would shorten the deadline for Russia to come to a deal with Ukraine to end the war, raising supply concerns,' ING analysts said in a note. Market participants are also waiting to hear the outcome of the U.S. Federal Open Market Committee meeting on Tuesday and Wednesday. The Fed is widely expected to hold rates but could signal a dovish tilt amid signs of cooling inflation, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova.
Business Recorder
5 hours ago
- Business Recorder
US Fed opens policy meeting, set to hold rates steady
WASHINGTON: The US Federal Reserve opened its two-day policy meeting Tuesday, with the central bank widely expected to hold off on further interest rate cuts despite fierce political pressure from President Donald Trump to slash levels. Fed policymakers have kept the benchmark lending rate unchanged since their last rate reduction in December, as officials wait for clarity on how Trump's tariffs are impacting the world's biggest economy. Their patient approach has riled the president, who has chastised Fed Chair Jerome Powell on multiple occasions, calling him a 'numbskull' and a 'moron.' On Tuesday, the Fed said in a statement that its policy meeting started at 9:00 am US Eastern time (1300 GMT) as scheduled. Fed poised to hold off on rate cuts, defying Trump pressure The case for holding interest rates steady at a range between 4.25 percent and 4.50 percent this week has been made by several Fed speakers, said JP Morgan chief US economist Michael Feroli in a recent note. Inflation remains above the Fed's longer-term target of two percent, risks still persist and the labor market is near full employment, he added. The Fed has signalled it is waiting on the effects of Trump's sweeping tariffs on allies and competitors alike to begin to show up in economic data. As the central bank mulls changes to monetary policy, officials are seeking a balance between price stability and maximum employment. Analysts are expecting to see some dissent from Fed policymakers at the end of their meeting Wednesday, given that a couple of officials have signaled openness to rate cuts as soon as in July. 'It will be interesting to watch whether Powell alludes to some potential policy easing before year-end' or if he avoids explicit forward guidance given differences among the Fed's rate-setting committee, said EY chief economist Gregory Daco. 'With no imminent need to act, and a fractured FOMC facing asymmetric risks, the Fed will likely wait until September to deliver the next 25 basis points rate cut,' Daco added, referring to the Federal Open Market Committee. The Fed said Governor Adriana Kugler would not be attending the meeting 'due to a personal matter.'
