Futures for major U.S. stock indexes are pointing toward a modestly higher open on Monday, signaling that the recent rally on Wall Street could continue.
Investor sentiment has been buoyed by a surprise trade deal reached over the weekend between the U.S. and the European Union, along with indications that the U.S. and China may extend their tariff truce for an additional 90 days.
The U.S.-EU pact includes a 15% tariff on European imports — a notable drop from the originally threatened 30%.
As part of the agreement, the European Union has also committed to purchasing $750 billion in American energy products and boosting investment in the U.S. economy by $600 billion.
Despite this positive trade backdrop, market activity may stay light ahead of the Federal Reserve’s upcoming interest rate announcement later in the week.
While the Fed is widely expected to hold rates steady, investors will closely watch for clues about future policy moves.
In addition, the Labor Department’s jobs report and quarterly earnings from tech heavyweights Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Meta Platforms (NASDAQ:META) are set to be key market drivers.
Last Friday’s session saw strong performances across the board, with the Dow rebounding from earlier losses and both the Nasdaq and S&P 500 closing at fresh record highs.
The Dow finished up 208.01 points (0.5%) at 44,901.92, the Nasdaq climbed 50.36 points (0.2%) to 21,108.32, and the S&P 500 rose 25.29 points (0.4%) to 6,388.64.
This upward momentum reflects hopes that several trade agreements will be finalized before President Donald Trump’s August 1 deadline for expanding tariffs on U.S. trading partners.
With the deadline approaching, many countries are negotiating to avoid steep tariffs on their exports.
Meanwhile, European markets struggled, pressured by concerns over trade negotiations and some weak earnings results.
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