US Stock Market Today: S&P At Record High, Nasdaq Jumps 60 Points After EU Trade Deal; Mag 7 In Focus
US Stock Market Today: S&P 500 and Nasdaq opened at record highs after the trade agreement boosted investor sentiment, kick-starting a pivotal week for Wall Street.
US Stock Market Today: The S&P 500 and the Nasdaq opened at record highs on Monday after the highly-anticipated trade deal was announced between the US and the European Union (EU) block. The trade agreement boosted investor sentiment, kick-starting a pivotal week featuring megacap earnings, US Federal Reserve policy decision, and a looming tariff deadline.
On July 28, the Dow Jones Industrial Average rose 45.1 points, or 0.10%, at the open to 44946.98. The S&P 500 rose 9.0 points, or 0.14%, to 6397.69, while the Nasdaq Composite index rose 68.1 points, or 0.32%, to 21176.401at opening. At 9:39 a.m ET, Dow fell 0.10%, to 44,855.92.
The blue-chip index was about 215 points away from its December 4 record high. The S&P 500 last rose 0.08% and the Nasdaq Composite gained 0.28%, up almost by 55 points. The S&P 500 index has gained more than 30% and the Nasdaq over 40% since their April lows.
Ether-linked companies GameSquare and BTCS were up 4% each after Ethereum prices hit over a seven-month high. Nike rose 2.1% after JPMorgan upgraded the stock to "overweight" from "neutral" and said investors should "just buy it".
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Magnificent Seven pack under radar
More than 150 companies in the S&P 500 are due to post their quarterly results. The market's remarkable rally faces a crucial test in the days ahead, as "Magnificent Seven" heavyweights Meta, Microsoft, Amazon, and Apple, prepare to report their earnings, potentially setting the tone for Wall Street.
Last week, Alphabet surprised Wall Street with a bold capital spending hike, reviving AI optimism, even as Tesla cast a shadow by warning of tough quarters ahead amid shrinking electric vehicle subsidies. Tesla rose 0.4% after the automaker signed a $16.5 billion deal to source chips from Samsung Electronics.
European markets after US-EU trade deal
Europe's major bourses made modest gains and the euro fell on Monday as investors greeted a trade agreement between the US and European Union with cautious relief at the start of an action-packed week for markets.
The STOXX 600, touched a four-month high earlier on Monday with a slender 0.5% rise, while the euro slid 0.7% against the dollar in what was shaping up to be the biggest hit to this year's 10% rally since May.
The framework trade deal, which European Commission President Ursula von der Leyen described as the best the bloc could get, will impose a 15% import tariff on most EU goods and see the EU spend $600 billion on U.S. investments while opening up some important parts of its market.
Germany’s 10-year yield , the euro area’s benchmark, was 0.5 basis points lower at 2.71% after rising more than 10 basis points at the end of last week when the European Central Bank curbed talk of imminent rate cuts.
US Fed, BoJ policy decisions this week
Traders are waiting for interest rate decisions from both the US Federal Reserve and Bank of Japan, monthly US non-farm payrolls. While the US Fed and the BOJ are expected to maintain rates, comments from the officials will be crucial for investors to gauge the interest rate path.
The trade deal with Japan has opened the door for the BOJ to raise rates again this year. Meanwhile, the us Fed is likely to be cautious on any rate cuts as officials seek more data to determine the impact of tariffs on inflation before they ease rates further.
