Wall Street futures rose Sunday evening after the U.S. and the European Union reached a framework trade deal, as investors geared up for a pivotal week packed with the Federal Reserve’s policy decision, a key tariff deadline, and earnings reports from several “Magnificent Seven” tech giants.
U.S. stock futures pointed to further gains after last week’s strong finish, driven by solid corporate earnings and trade deals with key partners.
S&P 500 Futures rose 0.4% to 6,447.25 points, while Nasdaq 100 Futures climbed 0.5% to 23,528.75 points by 20:16 ET (00:16 GMT). Dow Jones Futures traded 0.3% higher at 45,223.0 points.
US, EU reach framework trade deal The United States and European Union have reached a landmark trade agreement that includes a 15% tariff on EU goods entering the U.S., President Donald Trump announced Sunday while in Scotland.
The broad-strokes deal encompasses significant EU purchases of U.S. energy and military gear, along with substantial investments in the American economy. The EU has committed to purchasing $750 billion worth of energy from the U.S, and has agreed to make $600 billion in investments in the U.S.
The pact may further ease market jitters, which had grown over fears of a deadlock before Trump’s "reciprocal" tariffs take effect on August 1. The EU had been bracing for 30% levies and was seeking a zero-for-zero deal.
“The big caveat to today’s deal is that there is nothing on paper, yet. The next hours and days will hopefully bring more clarity,” ING analysts said in a note.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. The deal comes as Wall Street indexes extend their record run, fueled by trade optimism from the U.S.-Japan agreement and strong corporate earnings.
In the regular trading session on Friday, the S&P 500 rose 0.4% to 6,388.64 points, its all-time closing high. The NASDAQ Composite closed 0.2% higher, also reaching its record peak. The Dow Jones Industrial Average jumped 0.5%.
Fed meet, PCE inflation, ‘Mag 7’ earnings on tap The Fed kicks off its two-day policy meeting this week, wrapping up on July 30. While rates are expected to stay at 4.25%–4.5%, investors will watch closely for signals on a possible cut in September.
“We see no interest rate cut this month, but the Fed is expected to start laying the groundwork for a move, most likely in December,” ING analysts added.
Tariffs and their inflation impact will be in focus Thursday with the release of June’s PCE price index, the Fed’s preferred inflation gauge.
Investors will also watch key labor data this week, including JOLTS on Tuesday, ADP private payrolls on Wednesday, jobless claims on Thursday, and the key July jobs report on Friday.
Along with a possible flurry of trade deals before August 1, the coming days will see a raft of corporate earnings, including results from mega-cap tech titans like Facebook-owner Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Apple (NASDAQ:AAPL), and Amazon (NASDAQ:AMZN).
