🇺🇸 U.S. Markets Hold Steady: EU Deal Ignored, Focus Shifts to Fed & Tech Earnings
The S&P 500 closed nearly flat on Monday at 6,389.77, inching up just 0.02%, as traders brushed off the newly announced U.S.–EU trade deal and turned attention to bigger market drivers. The Dow Jones slipped 64.36 points to 44,837.56, while the Nasdaq gained 0.33% to a record 21,178.58.
📜 Trump-EU Trade Agreement Draws Shrugs
President Trump revealed a tariff-cutting deal with the EU—reducing rates to 15% for compliant countries while warning others of 15–20% duties. However, markets barely reacted, with traders more focused on macro data, Fed policy, and major earnings ahead.
📊 Heavy Week: Fed, Tech Giants, and Jobs Data
This is the busiest earnings week of the quarter, with 150+ S&P 500 companies reporting.
Wednesday: Meta, Microsoft
Thursday: Amazon, Apple
Investors are eyeing AI investment payoffs and cloud performance. The Fed’s two-day meeting wraps Wednesday, with rates expected to hold at 4.25%–4.5%.
Meanwhile, Friday’s jobs report forecasts 102K new jobs in July, down from June’s 147K, signaling a cooling labor market.
🌍 EU Markets React Sharply
Unlike the U.S., Europe saw turmoil.
Euro fell 1% vs the dollar — biggest drop since May
DAX -1.1%, CAC 40 -0.4%, auto sector -1.8%
German Chancellor Merz warned the deal could hurt both sides:
> “Inflation will rise, and transatlantic trade will suffer.”
France’s PM Bayrou slammed the agreement as a “black day for Europe.”
📈 Oppenheimer Turns Bullish on S&P 500
Oppenheimer raised its 2025 S&P 500 target to 7,100, up from 5,950, citing optimism after Trump paused his harshest trade measures. The firm sees an 11.1% upside from last week’s close.
