US stocks showed positive movement with the S&P 500 and Nasdaq Composite indexes closing at record highs, supported by the success of the US-European Union (EU) trade deal reached last week.
European Commission President Ursula Von Der Leyen met with President Donald Trump in Scotland to seal a framework trade deal that Trump had previously described as ‘50-50’.
Trump on Sunday announced that the US and the EU had reached a landmark trade deal that involves a 15% tariff on EU goods entering the US.
The deal also includes the EU’s purchase of energy and military equipment from the US.
The EU has committed to buying $750 billion worth of energy from the US and agreed to invest $600 billion in the country’s economy.
The pact is expected to ease market jitters ahead of Trump’s tariffs on August 1, when the EU is set to impose a 30% levy and propose a zero-rating deal.
The talks came as Wall Street continued to hit record highs on optimism over the US-Japan trade deal and strong corporate earnings.
The S&P 500 rose 0.40% to 6,388.64, the Dow Jones Industrial Average rose 0.47% to 44,901.92, and the tech-focused Nasdaq added 0.24% to 21,108.32.
In other news, the Federal Reserve (Fed) will begin a two-day policy meeting ending July 30 with interest rates expected to remain at 4.25% to 4.5%. However, investors will be watching for any potential cuts in September.
ING analysts said there was no rate cut this month, but the Fed expects a move to be likely in December.
Investors are now looking ahead to key labor market data this week, including JOLTS on Tuesday, ADP private payrolls on Wednesday, jobless claims on Thursday and the July jobs report on Friday.
