US stocks edged higher on Monday, with major indexes showing muted gains following the announcement of a trade agreement between the United States and the European Union.
The Dow Jones Industrial Average hovered near the flatline, while the S&P 500 rose 0.1%. The Nasdaq Composite gained 0.3%.
The market reaction followed President Donald Trump’s announcement on Sunday that the US and EU had agreed to reduce tariffs to 15%.
The deal marked a de-escalation from Trump’s earlier threat to impose 30% tariffs on most goods imported from the EU.
Investors are turning their attention to a packed week ahead.
Quarterly earnings from several major technology companies are expected, alongside a key Federal Reserve policy meeting, the administration’s tariff deadline on Friday, and new inflation data.
This is expected to be the busiest week of the earnings season.
More than 150 companies in the S&P 500 are scheduled to report earnings, including major technology firms Meta Platforms and Microsoft on Wednesday, followed by Amazon and Apple on Thursday.
Investor focus will be on commentary related to artificial intelligence spending, which could provide insight into the viability of this year’s significant investments in hyperscale infrastructure.
The Federal Reserve will begin its two-day policy meeting on Tuesday, with a decision due Wednesday.
While the central bank is widely expected to hold its benchmark interest rate steady within the current 4.25%–4.5% target range, markets will be closely watching for any indications of a possible rate cut in September.
While Monday’s economic calendar was relatively light, key data releases are expected later in the week.
The Commerce Department will publish its first estimate of second-quarter GDP on Wednesday.
Economists polled by Dow Jones anticipate annualized growth of 2.3% for the April–June period, following a 0.5% contraction in the first quarter.
US-EU trade deal
President Donald Trump on Sunday said the United States had reached a trade agreement with the European Union, concluding negotiations held in the days leading up to the August 1 tariff deadline with European Commission President Ursula von der Leyen.
According to Trump, the agreement includes a 15% tariff on most European goods entering the US, including automobiles.
However, certain categories such as aircraft and their components, select chemicals, and pharmaceutical products will be excluded from the tariff measures, von der Leyen said at a briefing following the announcement.
She also clarified that the 15% rate would not be applied on top of existing tariffs.
The agreed rate is lower than the 30% tariff Trump had previously threatened to impose, but remains above the 10% level that EU negotiators were seeking.
Trump also said the EU had committed to purchasing $750 billion worth of US energy and pledged $600 billion in additional investments into the US economy beyond current levels.
He added that the EU would be acquiring “hundreds of billions of dollars worth of military equipment,” though he did not disclose a specific figure.
Describing the outcome of the talks, Trump characterised the agreement as “the biggest of all the deals.”
Von der Leyen called it a “huge deal,” and said the negotiations had been tough.
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