Stock Market Today: Dow, S&P Live Updates for July 28 – Bloomberg
Global markets got a boost on Monday after the U.S. and European Union reached a new trade agreement, easing fears of a major trade clash. This deal helped lift stock markets and strengthened the euro, setting a more positive tone ahead of big economic updates this week.
What’s the deal?
The U.S. and EU agreed on a trade framework that includes a 15% tariff on most European imports—much lower than the originally threatened 30%. This follows a similar deal between the U.S. and Japan last week, which reduced planned tariffs on auto imports.
The agreement also includes European purchases of U.S. energy and military equipment, while Europe won’t retaliate with tariffs of its own—a move seen as a win for the U.S.
“This isn’t negotiation—it’s the art of the deal,” said Prashant Newnaha from TD Securities.
With an August 1 deadline looming for trade agreements set by President Trump, countries are scrambling to wrap up negotiations. Talks between the U.S. and China are set to continue in Stockholm today, with expectations of a 90-day extension to the current trade truce.
Markets react positively
- S&P 500 futures rose 0.4%
- Nasdaq futures gained 0.5%
- Euro strengthened against the dollar, pound, and yen
- European stock futures surged nearly 1%
- Hong Kong’s Hang Seng index rose 0.75%
- China’s CSI 300 index edged up 0.3%
- Australia’s dollar stayed near an eight-month high at $0.657
Meanwhile, Japan’s Nikkei dipped 0.8% after hitting a one-year high last week.
Analysts say the U.S.-EU deal provides much-needed clarity and helps avoid a larger trade war between two economic powerhouses that together make up about a third of global trade.
“Markets see this as a sign that stability is returning,” said Marc Velan of Lucerne Asset Management.
Big week ahead: Fed, BOJ, and Tech Giants
Investors are watching this week closely as:
- The Federal Reserve (Fed) and Bank of Japan (BOJ) hold key policy meetings
- The U.S. jobs report is due
- Tech giants Apple, Microsoft, and Amazon report earnings
No major interest rate changes are expected, but comments from policymakers will be closely watched. The recent trade deal with Japan might pave the way for the BOJ to hike rates later this year. The Fed, on the other hand, is likely to hold off on any rate cuts until it sees more data on how tariffs are affecting inflation.
However, President Trump has been pressuring the Fed to cut rates—criticizing Fed Chair Jerome Powell and pushing for easier monetary policy. Two Fed board members appointed by Trump have also supported rate cuts.
“Key data like the PCE inflation index and July’s job numbers will shape expectations for the Fed’s next move—possibly in September,” said Kieran Williams of InTouch Capital Markets.
Oil up, gold down
- Oil prices rose 0.5%, with both Brent and U.S. crude futures climbing after the trade deal.
- Gold prices dropped to a near two-week low, as demand for safe-haven assets eased.
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