U.S. stock markets closed mostly unchanged, despite a recent trade agreement between the U.S. and the European Union. Investor attention is shifting to upcoming company earnings reports and statements from the Federal Reserve.
Market Reaction to Trade Agreement
The S&P 500 closed at 6,389.77, up just 0.02%. After opening, the index reached a new all-time high but barely moved afterward. Meanwhile, the Dow Jones Industrial Average dropped by 64.36 points to 44,837.56. The Nasdaq Composite gained 0.33%, finishing the day at 21,178.58, also reaching a record earlier in the session.
Earnings Report Expectations
More than 150 companies in the S&P 500 are set to report quarterly earnings this week, making it the busiest stretch of the season so far. Meta and Microsoft are expected to post results on Wednesday, followed by Amazon and Apple on Thursday. Investors are particularly watching for commentary on AI-related spending, with Friday's U.S. jobs report anticipated to show an increase of 102,000 jobs in July, a decrease from June's figures.
European Reaction to Tariffs
The announced agreement has sparked negative reactions in Europe. The euro dropped by more than 1% against the U.S. dollar. German Chancellor Friedrich Merz and French Prime Minister François Bayrou expressed dissatisfaction with the new tariff agreement, noting that it could cause 'considerable damage' to Germany and transatlantic trade.
Markets remain in wait for further economic data and Federal Reserve decisions, which could shape trading directions in the coming weeks.
