US stock futures pointed higher on Monday after the US and European Union struck a trade pact to lead off a packed week of Big Tech earnings, a Federal Reserve meeting, inflation data, the July jobs report, and President Trump’s Aug. 1 deadline to lock in key trade deals.
Contracts on the S&P 500 (ES=F) and the tech-heavy Nasdaq (NQ=F) put on roughly 0.2% and 0.4%, respectively, after closing out Friday at fresh record highs. Dow Jones Industrial Average futures (YM=F) floated just above the flatline as stocks pared earlier premarket gains.
The US and EU have agreed the outlines of a deal setting tariffs on Europe’s goods at a baseline 15%, compared with the 30% threatened. Trump called the pact “the biggest of them all,” while EU head Ursula von der Leyen said that “15% is not to be underestimated, but it is the best we could get.”
An initial boost to market sentiment faded in as investors digested the conflicting details in the US-EU deal framework. But stocks are still on track to resume a rally that saw the S&P 500 (^GSPC) notch its fifth all-time high in a row on Friday.
Read more: The latest on Trump’s tariffs
At the same time, hopes are rising for a US-China talks in Stockholm on Monday, which could reportedly extend the existing tariff truce by three months beyond its current Aug, 12 deadline.
Investor eyes are now turning to a jam-packed week on Wall Street. Heavyweight earnings highlight the most intense stretch of the season, with more than 150 S&P 500 companies set to report. Meta Platforms (META) and Microsoft (MSFT) lead off Wednesday, followed by Amazon (AMZN) and Apple (AAPL) on Thursday.
Read more: Full earnings coverage in our live blog
Beyond earnings, the Fed begins its two-day policy meeting on Tuesday, with an interest-rate decision expected Wednesday. While the central bank is expected to keep rates at 4.25%-4.50%, the watch is on for signs that policymakers are warming to a rate cut in September. It all comes alongside Trump’s general pressure on the central bank and Chair Jerome Powell.
On the data front, inflation and labor will be in the spotlight. The July reading of the personal consumption expenditures (PCE) index, the Fed’s preferred inflation gauge, is forecast to show a modest monthly and annual uptick on its release on Thursday.
Also on deck: a flurry of jobs data, with Friday’s crucial jobs report the highlight.
LIVE 11 updates
Trump looms large over a Fed likely to again defy his call for cuts
President Trump and others in the White House have hammered Jerome Powell for months over the Federal Reserve Chair’s wait-and-see stance on easing interest rates.
That means Trump should loom large over the Fed’s policy meeting this week, even if policymakers do what the market expects and keep rates unchanged.
Yahoo Finance’s Jennifer Schonberger reports:
Read more here.
Health insurance companies have a problem
As Americans use their health insurance more and the cost of care increases, insurance companies have seen their financial results come under pressure.
Yahoo Finance’s Jake Conley reports:
Read more here.
Dollar strengthens, euro slips on trade deal
The US dollar index (DX-Y.NYB) rose 0.6% on Monday following news that the United States and European Union struck a trade deal. The euro (EURUSD=X) slipped 0.7% against the dollar at $1.16.
While the framework’s added clarity brought some relief to the trading partners, the deal was seen as more mixed in Europe, which was angling for free trade.
Under the deal, European goods bound for the US will face a 15% tariff, and the EU will spend $600 billion on US investments, though some details remain unclear. Together, the US and EU account for about a third of all global trade.
How ethereum rose to become a mainstream cryptocurrency
The Ether Machine is preparing to go public after raising the equivalent of $1.5 billion, with its promise of offering the public a new way to access cryptocurrency yields. It’s the latest sign of ethereum’s move out of bitcoin’s shadow and into mainstream adoption.
Yahoo Finance’s Nina Moothedath reports:
Here’s what to know about ethereum and what sets it apart from other blockchains.
ASML’s stock is in focus after US/EU trade deal
Semiconductor play ASML (ASML, ASML.AS) getting a lot of mentions on the Street this morning as a winner from the US/EU trade deal.
Shares were up nearly 5% at one point in premarket trading. (I would note ASML just a week ago issued weak guidance that hammered the stock, so be mindful of that.)
Here’s what JP Morgan had to say this morning:
Good morning. Here’s what’s happening today.
Fed meeting, jobs report, Big Tech earnings — and Trump’s deadline: What to watch this week
The impact of President Trump’s policies on the economy is about to get a lot clearer.
Yahoo Finance’s Josh Schafer takes a look at what to expect this week and why it matters:
Read more here.
Trending tickers: Nike, Samsung Electronics and US liquefied natural gas stocks
Here are some top stocks trending on Yahoo Finance in premarket trading:
Nike (NKE) shares were up over 3% before the bell on Monday after receiving an upgrade from JPMorgan (JPM), moving its rating from neutral to overweight and setting a new price target of $93, up from the previous $64.
Samsung Electronics (005930.KS) stock rose 6% after announcing that it had secured a 16.5 billion deal to make Tesla’s next-generation AI chip.
Shares in US liquefied natural gas developers surged in premarket trading on Monday, after the European Union pledged to purchase $750 billion worth of the super-cooled fuel over the next three years as part of a sweeping trade pact. NextDecade (NEXT), Venture Global (VG), and Cheniere Energy (LNG)jumped between 7% and 8.8%.
Samsung to make AI chips for Tesla under $16.5 billion deal
Samsung Electronics (005930.KS, SSNLF) has landed a $16.5 billion deal to make Tesla’s (TSLA) next-generation AI chip.
The agreement, which runs through the end of 2033, will see the South Korean company produce the AI6 semiconductor at an upcoming plant in Texas.
Shares of Tesla stepped up 1.5% in premarket trading, after its CEO Elon Musk confirmed on X that the EV maker had struck the multibillion-dollar deal. Meanwhile, Samsung’s Seoul-traded stock rose almost 7% to its highest level since September.
“The strategic importance of this is hard to overstate,” Musk wrote. “The $16.5B number is just the bare minimum. Actual output is likely to be several times higher.”
Bloomberg reports:
Read more here.
Oil rises with EU-US trade deal locked in
Oil prices eked out gains as the US and the EU finalized details of a trade deal ahead of Trump’s Aug. 1 deadline.
Bloomberg reports:
Read more here.
European stock futures rise on US-EU trade deal announcement
Futures in European stock indexes saw positive bumps early morning Monday as the markets reacted to the announcement of a tariff deal between the US and the EU
Interest in individual stocks in carmakers, luxury goods makers, and alcohol conglomerates is rising ahead of the market open Monday with those industries the most impacted by the deal.
Bloomberg reports:
Read more here.
