US stocks wavered on Monday after the US and European Union struck a trade pact, kicking 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.
The S&P 500 (^GSPC) hovered near the flatline, while the tech-heavy Nasdaq Composite (^IXIC) put on about 0.2% after both indexes closed out Friday at fresh record highs. The Dow Jones Industrial Average (^DJI) slipped below the flatline.
The US and EU have agreed to 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.”
Read more: The latest on Trump’s tariffs
At the same time, hopes are rising for 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.
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Read More: Dow, S&P 500, Nasdaq waver as Trump-EU trade deal kicks off huge week
