U.S. stock futures rose early Monday following a breakthrough U.S.-EU trade agreement that eased global tensions and kicked off what’s expected to be one of the busiest—and most consequential—weeks of the summer for markets.
Futures edge higher on trade breakthrough
- Dow Jones futures climbed 117 points (+0.26%)
- S&P 500 futures gained 0.32%
- Nasdaq 100 futures rose 0.5%
The uptick follows a weekend announcement from President Donald Trump that the U.S. reached a new trade deal with the European Union, slashing proposed tariffs on most European imports from 30% down to 15%. The agreement also includes $750 billion in U.S. energy purchases and $600 billion in new EU investment, according to White House figures.
Wall Street rally continues: Weekly recap
All three major indexes ended last week in the green:
- Dow Jones: +208 points to 44,901.92
- S&P 500: +0.40% to 6,388.64 (5th straight record close)
- Nasdaq Composite: +0.24% to 21,108.32 (15th record close of 2025)
Markets were buoyed by upbeat corporate earnings, reduced geopolitical risks, and optimism around artificial intelligence investments.
“The AI Action Plan and easing global trade tensions have kept investor enthusiasm at record highs,” said Nick Savone of Morgan Stanley.
What’s ahead this week: Earnings, Fed, inflation
Corporate Earnings Bonanza
More than 150 S&P 500 companies are reporting earnings this week. Notable names include:
- Wednesday: Meta Platforms (META), Microsoft (MSFT)
- Thursday: Amazon (AMZN), Apple (AAPL)
Investors are especially tuned in for commentary on AI spending and forward guidance, which are expected to drive market sentiment.
Federal Reserve Meeting
The Fed’s two-day policy meeting concludes Wednesday. While rates are expected to remain at 4.25%–4.50%, any hint of a possible September rate cut will be closely watched.
Trump has recently ramped up pressure on the central bank, and investor attention is turning to internal Fed communications and public transparency demands.
Inflation and Jobs Data
Key economic indicators dropping this week:
- Tuesday: Job Openings and Labor Turnover Survey (JOLTS)
- Wednesday: ADP private payrolls
- Thursday: Personal Consumption Expenditures (PCE) Index
- Friday: July jobs report
PCE, the Fed’s preferred inflation gauge, is expected to show a rise to 2.4% year-over-year, up from 2.3% in May. Analysts expect 115,000 new jobs added in July, down from 147,000 in June.
Global markets and sectors react
- Asia-Pacific: Mixed results; Hong Kong’s Hang Seng rose 0.68%, while India’s Nifty 50 fell 0.67%
- Europe: Euro Stoxx 50 futures up 1% on trade deal optimism
- Oil: Brent crude climbed 0.82% to $69 per barrel as energy investors digested the new U.S.-EU pact
Notably, Samsung Electronics surged over 6% following a confirmed $16.5 billion semiconductor deal with Tesla, underscoring continued interest in chip and AI infrastructure stocks.
What this means for investors
Market optimism is high—but so is volatility risk. With inflation, interest rates, and corporate earnings all hitting headlines this week, investors should brace for rapid swings across sectors.
As earnings season peaks and inflation data rolls in, tech-heavy indexes may continue to lead. However, rate-sensitive and international trade-exposed sectors remain especially vulnerable to any surprises from the Fed or White House.