Wall Street Opens at Record Highs Amid US-EU Trade Optimism, But Big Tech Earnings Loom
The S&P 500 and Nasdaq opened at fresh record highs on Monday, lifted by optimism over a newly announced US-EU trade deal. The S&P 500 rose 0.1%, while the Nasdaq gained 0.3%. The Dow remained flat, hovering near its all-time high.
Since hitting lows in April, the S&P 500 has climbed more than 30%, while the Nasdaq has surged over 40%.
Over the weekend, President Donald Trump and European Commission President Ursula von der Leyen agreed to a trade pact that will impose a 15% tariff on most EU goods, half the rate previously planned for 1 August.
The rally follows a week of positive momentum fuelled by trade agreements with Japan, Indonesia, and the Philippines. However, the market now faces a major test as key members of the “Magnificent Seven” tech stocks prepare to report earnings.
Meta, Microsoft, Amazon, and Apple are all due to release results this week, with investors watching closely to see whether they can sustain the rally.
Last week, Alphabet reignited AI enthusiasm with a bold increase in capital expenditure, while Tesla warned of tougher times ahead amid declining electric vehicle subsidies.
“This is about as busy as a week can get in the markets,” said Chris Larkin of E*Trade. “With four of the Magnificent Seven reporting, the tech sector could lead the market sharply in either direction.”
