The Dow Jones (DJIA) opened Monday’s trading session less than 0.5% away from a record high after President Trump announced a trade agreement with the European Union and ahead of a busy earnings week. The Fed will also hold its Federal Open Market Committee (FOMC) meeting on July 29-30 to set the federal funds rate.
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On Sunday, Trump and European Commission President Ursula von der Leyen announced that the two sides had reached a framework agreement for a trade deal. The deal would impose a 15% tariff on imported EU goods, half of the 30% that Trump had threatened.
Details of the U.S.-EU Trade Agreement
In addition, the EU has agreed to invest $600 billion into the U.S., while some of its exports, such as aircraft and chip equipment, will be exempt from tariffs. Separately, the group has also agreed to invest $750 billion into U.S. energy over the next three years.
The EU is the largest trading partner of the U.S., although the comparison is flawed because the bloc comprises 27 nations. In 2024, the U.S. had a significant $235.6 billion goods trade deficit with the EU.
The Dow Jones is up by 0.08% at the time of writing.
