The S&P 500 and Nasdaq Composite reached new heights at the start of the week because investors received reassurance from a fresh U.S.-EU trade agreement that eliminated tariff concerns. The Dow Jones Industrial Average maintains its position near December’s peak although investors remain cautious about upcoming earnings reports and the Federal Reserve’s upcoming decision.
President Donald Trump and European Commission President Ursula von der Leyen announced a new trade agreement which establishes a 15% tariff on EU imports at half the previously proposed rate while following recent agreements with Japan and other essential trade partners. The S&P 500 has gained more than 30% since April while the Nasdaq has risen over 40% because of rising optimism about trade tensions easing.
The upcoming week will be essential for equities because Apple, Amazon, Microsoft and Meta will release earnings as part of the “Magnificent Seven” tech giants. The market showed renewed interest in AI after Alphabet increased its capital spending but Tesla’s warning about short-term challenges brought some caution to the sector.
The upcoming Federal Reserve policy meeting will be under close investor scrutiny because markets expect no rate changes. The CME data indicates a 63% probability that interest rates will decrease by September. The price surge of Ether reached its highest point in seven months which caused Ethereum-linked stocks to experience significant increases.
