Global markets opened the week on an optimistic note after confirmation of a new trade framework between the United States and the European Union that eases longstanding tariff tensions. The pact, which establishes a 15% tariff on most European imports—a far cry from the previously threatened 30%—also includes EU commitments to invest in U.S. energy and defense sectors, along with roughly $600 to $750 billion in U.S.-bound investments and energy purchases.
Investor sentiment lifted quickly. U.S. stock futures climbed modestly, with Nasdaq futures rising around 0.4%, S&P 500 futures up 0.2%, and Dow Jones futures gaining approximately 0.1%. Meanwhile, European futures rallied shortly after the deal was announced, with gains of nearly 1% in the EuroStoxx 50 and Germany’s DAX.
Beyond trade headlines, several corporate developments fueled further optimism. Tesla stock jumped nearly 2% in premarket trading following news of a $16.5 billion chip supply agreement with Samsung. The deal will see Samsung manufacture Tesla’s next-generation AI computing chips using an advanced 2nm process node, aimed at powering Tesla’s Dojo platform and Optimus robot systems.
Nike shares surged about 4% after J.P. Morgan upgraded the company’s rating to “Overweight,” citing stronger global demand and momentum as key factors behind the bullish outlook.
Read Also: https://mensinsider.com/u-s-dollar-drops-to-three-month-low-amid-trade-war-concerns/
Alibaba also experienced a boost, with shares climbing approximately 1.5%. The rise followed renewed investor confidence driven by the company’s recent AI product unveilings, including Quark smart glasses, and the continued market revaluation of its cloud and e-commerce divisions.
The timing of the trade deal is seen as particularly significant given the broader market context. This week is a pivotal one for Wall Street, with a slate of major earnings reports from Big Tech companies, including Apple, Microsoft, Amazon, Meta, and Alphabet. These reports are expected to heavily influence market direction in the coming days.
In addition to corporate earnings, investors are closely watching for any policy signals from the Federal Reserve. The central bank’s two-day policy meeting begins Tuesday, and while most analysts expect interest rates to remain unchanged, there is heightened focus on potential commentary around rate cuts later this year. Economic data due later in the week, including the Personal Consumption Expenditures (PCE) index and July’s employment figures, will further shape investor expectations.
Analysts note that while the U.S.–EU trade agreement helps reduce uncertainty in global trade policy, broader concerns about elevated stock valuations and unresolved negotiations with other trading partners—such as China, Canada, and Mexico—continue to weigh on sentiment. The market remains sensitive to any developments that could disrupt economic stability or corporate profitability.
Despite these lingering concerns, the overall tone across equity markets has improved, bolstered by both policy clarity and encouraging corporate news. As investors navigate this high-stakes week, attention remains sharply focused on earnings performance and the Fed’s outlook for the remainder of the year.
