On Monday, U.S. stocks showed little change after the announcement of a new trade deal between the United States and the European Union. The S&P 500 rose slightly by 0.1%, while the Dow Jones Industrial Average remained almost flat. The Nasdaq Composite increased by 0.3%.
The trade deal, announced on Sunday by President Donald Trump, lowers tariffs on European goods to 15%, avoiding a planned 30% tariff. Investors reacted cautiously, as the deal was widely expected and the market now focuses on a busy week ahead.
This week is important for Wall Street. Over 150 companies in the S&P 500 will release their quarterly earnings reports, including major tech firms like Meta, Microsoft, Amazon, and Apple. Investors will watch closely for insights on spending in artificial intelligence and other growth areas.
The Federal Reserve will also hold a two-day policy meeting ending Wednesday. While no interest rate changes are expected, traders will look for hints about future rate cuts.
Economic data will be key this week. On Wednesday, the U.S. Commerce Department will report second-quarter GDP growth, expected at 2.3%. Inflation figures, including the Fed’s preferred personal consumption expenditures price index, will come out Thursday, with core inflation predicted to stay steady at 2.7%.
Job market reports will follow, with data on job openings, private payrolls, unemployment claims, and the crucial July jobs report on Friday. Economists expect 102,000 new jobs added in July and a slight rise in the unemployment rate to 4.2%.
Energy stocks gained on Monday as the EU agreed to buy $750 billion in U.S. energy products, helping Europe reduce reliance on Russian gas. Shares of companies like Cheniere, Venture Global, and NextDecade rose sharply in premarket trading.
Other notable moves included Nike’s shares climbing 4% after a JPMorgan upgrade and PagerDuty jumping 6% amid reports of potential sale interest. Cisco shares dipped slightly following a cautious analyst downgrade.
Overall, investors are approaching the week with optimism but remain cautious amid high expectations and important data releases ahead.
