New Trade Deal and S&P 500 Record High Barely Move Stock Market
Stocks are likely to climb this week after a trade deal was achieved between the U.S. and EU, and more positive news could be incoming.
Quick overview
- The stock market experienced minimal movement on Monday despite the announcement of a trade deal between the U.S. and EU.
- The S&P 500 reached a new high, marking its sixth consecutive record, while the Dow Jones fell due to declines in major companies.
- This week is significant for the market with key earnings reports from major companies and an important Federal Reserve meeting expected to influence stock prices.
- Ongoing trade talks between China and the U.S. may also impact market trends if a deal is reached.
The stock market moved surprisingly little on Monday as the United States and European Union announced a trade deal and the S&P 500 index reached a new high.
The S&P 500 climbed 0.02% on Monday, setting its sixth record high in a row, but not making much of an impact across the board. The Nasdaq Composite climbed 0.33% on the news that the EU and USA have reached a trade deal agreement.
The Dow Jones tumbled 0.14% against the other indices thanks to poor showings from Coca-Cola (KO), Johnson & Johnson (JNJ), and Verizon Communications (VZ)- all down more than 1% for the day. What does Monday’s subdued trading mean for the market? Could it indicate uncertainty about tariffs and trade deals?
Major Market Events for This Week
This should be a very busy week for the stock market, with earnings reports coming in from some of the most valuable stocks, including Microsoft (MSFT), Meta (META), Visa (VISA), and Amazon (AMZN). This is one of the biggest weeks of the quarter for earnings reports, so we expect to see the market shift significantly in the wake of these earnings reports.
This week also marks an important meeting for the Federal Reserve. Their meeting is closed to the public despite President Donald Trump’s request to open the meeting, and the Fed should be announcing their next interest rate cut. That does tend to shift the market, and we usually see a surge in stock prices following each interest rate cut.
China and the United States started talks this week to reach an agreement on trade. The two countries have been back and forth all year long about tariffs and trade restrictions, with some headway being made in regards to AI components already. If the countries can work out a trade deal, the stock market should climb in response. We anticipate early morning gains for the market based on the relatively positive trade agreement between the U.S. and EU.
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