🧭 Market Overview: Traders Remain Cautious

S&P 500 closed flat at 6,389.77, near record territory, with only a +0.02% gain. Despite the EU–US trade deal, most upside momentum faded quickly as traders shifted focus to domestic fundamentals.

The Dow Jones dipped by about 64 points (~0.14%), while the Nasdaq rose ~0.3%, driven by strength in tech and AI names.

Global equities drifted lower, and markets showed restraint even after long-awaited tariff clarity—underscoring investor fatigue around trade headlines.

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🎯 EU–US Trade Deal: No Catalyst for Risk Appetite

The deal imposes 15% tariffs on #Eu imports, down from the earlier 30% threat, and entails large EU investments in U.S. energy and defense.

Market reaction was muted: indexes barely budged, signaling that the agreement was broadly anticipated and insufficient to spur fresh optimism.

The euro tumbled over 1%, while the U.S. dollar rose sharply, reflecting increasing confidence in U.S. growth and relative weakness in Europe.

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🔍 Focus Shifts to Fed & Key U.S. Data

With trade concerns pushed to the background, U.S. markets are now focused on:

The Federal Reserve’s policy meeting, where no immediate rate change is expected, yet investors are watching for signals on potential cuts in September (currently ~61% priced).

A packed economic calendar: including the July JOLTS report, consumer confidence data, GDP growth estimate, and preferred inflation gauge (PCE).

Earnings from major megacaps such as Meta, Microsoft (Wednesday), Amazon and Apple (Thursday), plus beats from UnitedHealth, Boeing, UPS, and Procter & Gamble.

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💹 Market Dynamics at a Glance

Market Factor Current Sentiment & Impact

Trade Deal Seen as pre‑priced; lacked trigger for fresh gains

Equity Indices S&P flat, Dow slightly down, Nasdaq modest gains

Currency Moves Dollar strengthened; euro weakened sharply

Bond Yields U.S. Treasury yields rose modestly as risk sentiment firmed

Market Focus Shifting toward Fed decisions, macro data, and earnings flow