U.S. stock futures rose early Monday as investors reacted to the U.S.-EU trade deal and looked ahead to a packed week of big tech earnings. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.55%, 0.19%, and 0.39%, respectively, at 4:30 a.m. EST on July 28.
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The gains followed Sunday’s announcement by Trump that the U.S. had struck a deal with the European Union. The agreement imposes a 15% tariff on European exports, down from the 30% originally threatened.
Markets were already on a strong footing. The S&P 500 touched new intraday highs on Friday, ending the week up 1.5%. Major indices finished the week on a strong note, thanks to solid corporate earnings and favorable trade developments. The Nasdaq 100 and the Dow Jones Industrial Average ended the week 0.9% and 1.3% higher, respectively.
Importantly, the market is heading into the busiest week of earnings season. Over 150 S&P 500 companies will report results, including four of the “Magnificent Seven” tech giants. Meta (META) and Microsoft (MSFT) report on Wednesday, followed by Amazon (AMZN) and Apple (AAPL) on Thursday. Moreover, major firms like Boeing (BA), PayPal Holdings (PYPL), SoFi Technologies (SOFI), Robinhood Markets (HOOD), and Strategy (MSTR) will release their quarterly numbers this week.
Investors will watch closely for any comments on AI spending to see if this year’s big investments in cloud companies are paying off.
At the same time, the Fed will hold its two-day policy meeting, ending Wednesday. The central bank is expected to keep rates steady between 4.25% and 4.5%.
Traders will be watching inflation closely on Thursday as the June personal consumption expenditures (PCE) index will be released. According to FactSet, the report is expected to show a year-over-year increase to 2.4%, up from 2.3%, and a monthly rise to 0.31% from 0.14%.
On the economic front, several key jobs reports are on the way. The Job Openings and Labor Turnover Survey, or JOLTS data, will be released on Tuesday, followed by ADP’s payroll report on Wednesday, jobless claims on Thursday, and the July jobs report on Friday.
Meanwhile, the U.S. 10-year Treasury yield was down, floating near 4.4%. Also, WTI crude oil futures were trending higher, hovering near $65.33 per barrel as of the last check. However, the Gold Spot U.S. Dollar Price increased to nearly $3,337 per ounce on Friday.
Elsewhere, European stocks opened higher today after the U.S. and EU finalized a trade deal over the weekend.
Asia-Pacific Markets Traded Mixed Today
Asia-Pacific markets traded mixed today as investors await details of U.S.-China talks.
The Hong Kong index was up 0.68%. Also, China’s Shanghai Composite and the Shenzhen Component indices ended higher by 0.12% and 0.44%, respectively. However, Japan’s Nikkei and Topix indices closed lower by 1.1% and 0.72%, respectively.