EU Trade Deal Fails to Spark Rally, Stocks Little Changed
The S&P 500 ended Monday near the flatline as traders looked past a trade deal announced between the U.S. and the European Union, and a big week of market catalysts — including the Federal Reserve’s rate decision — loomed.
The Dow Jones Industrial Average dumped 64.36 points to 44,837.56.
The much broader index eked ahead 1.13 points to 6,389.77.
The NASDAQ gained 70.27 points to 21,178.58.
The moves came after President Donald Trump announced Sunday that the U.S. has reached an agreement with the European Union to lower tariffs to 15%. The president had previously threatened 30% tariffs on most imported goods from the U.S.’s largest trading partner.
On Monday, Trump said that the global baseline tariff for countries that have not renegotiated with the U.S. will likely be between 15% to 20%.
More than 150 companies in the S&P 500 are due to post their quarterly results, including “Magnificent Seven” names Meta Platforms and Microsoft on Wednesday, followed by Amazon and Apple on Thursday. Investors will be listening for companies’ comments on AI spending for direction on whether big investments in hyperscalers this year are justified.
The Fed will also hold its two-day policy meeting, concluding on Wednesday. Although the central bank is expected to keep its key short-term interest rate at its current target range of 4.25%-4.5%, investors will be looking for clues about whether a rate cut could be on the table at the September meeting.
Prices for the 10-year treasury were fairly flat, raising yields to 4.41% Friday’s 4.38%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.92 to $67.08 U.S. a barrel.
Gold prices stumbled $19.00 to $3,316.60 U.S. an ounce.
