US stocks reached new record highs on Monday during a relatively quiet trading session, following the announcement of a trade agreement between the US and the European Union. This development sets the stage for a busy week ahead, filled with major earnings reports from Big Tech, a Federal Reserve meeting, inflation data releases, and the much-anticipated July jobs report, alongside President Trump’s looming Aug. 1 deadline for securing significant trade agreements.
The S&P 500 rose slightly, marking its sixth consecutive day of record closures. The Nasdaq Composite added approximately 0.3%, also reaching a new high, while the Dow Jones Industrial Average experienced a minor decline of 0.2%.
The trade pact between the US and EU established a baseline tariff of 15% on European goods, significantly lower than the 30% initially threatened. President Trump hailed the agreement as “the biggest of them all,” though reactions from EU leaders were more cautious.
Simultaneously, there are growing expectations for US-China talks in Stockholm that may extend the current tariff truce by three more months, pushing the deadline beyond August 12.
Investors are preparing for an intense earnings week as over 150 S&P 500 companies are set to report their quarterly results. The week begins with major names like Meta Platforms and Microsoft on Wednesday, followed by Amazon and Apple on Thursday.
Additionally, the Federal Reserve is set to hold a two-day policy meeting starting Tuesday, with an interest rate decision anticipated for Wednesday. While the Fed is expected to maintain the current rates at 4.25%-4.50%, there is speculation about a potential rate cut in September amid ongoing pressure from President Trump on the central bank.
Inflation and employment statistics will also dominate the economic landscape this week. The personal consumption expenditures (PCE) index, which is the Fed’s preferred measure of inflation, is set to be released on Thursday, with analysts predicting a slight increase. Friday’s jobs report will further illuminate the state of the labor market, highlighting the economic challenges and opportunities ahead.
Overall, while uncertainties remain, this week presents a critical moment for investors as they navigate earnings, monetary policy, and international trade dynamics, which could pave the way for further market growth.