Stock futures show small gain as U.S.- EU trade deal kicks off a hectic week for markets: Live updates

U.S. equity futures rose but were off their highs Monday as investors showed limited enthusiasm over a trade deal announced between the U.S. and the European Union.

Futures tied to the Dow Jones Industrial Average climbed just 24 points, or 0.05%. S&P 500 futures were 0.16% higher and Nasdaq 100 futures added 0.34%.

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.

“While sentiment is increasingly bullish, there's some hesitation about chasing stocks at record highs in the immediate term off something that was widely expected ahead of what is going to be one of the busiest weeks of the entire year,” Adam Crisafulli of Vital Knowledge said in a note.

Wall Street otherwise prepared for an especially busy week that will bring earnings from several major tech companies, a key Federal Reserve meeting, Trump's Aug. 1 tariff deadline and important inflation data.

The market is gearing up for the busiest week of earnings season.

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.

This week, 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.

Though there is little on the economic docket Monday, the rest of the week holds a variety of pivotal releases.

The first glance at second-quarter economic growth will happen Wednesday when the Commerce Department releases its estimate on real gross domestic product growth. Economists surveyed by Dow Jones expect the U.S. economy grew at a 2.3% annualized pace for the April-through-June period, following a 0.5% decline for the first quarter.

Tariffs and their effect on inflation will remain in focus on Thursday as traders get the June personal consumption expenditures price index, the Fed's preferred measure of inflation. The report is expected to show inflation rising to core inflation, which excludes food and energy, holding steady at 2.7% and headline inflation rising to 2.5%, according to Dow Jones consensus estimates. The monthly gauges are both expected to show 0.3% increases.

Investors will also get a batch of jobs-related data this week, including the Job Openings and Labor Turnover Survey, or JOLTS, on Tuesday, ADP's private payrolls report on Wednesday, initial jobless claims Thursday and, on Friday, the critical July jobs report. The report is expected to show the economy added 102,000 jobs in July, down from 147,000 in June. The unemployment rate is expected to show a slight bump to 4.2% from 4.1%.

Stocks are coming off a winning week fueled by strong earnings and recent deals between the U.S. and other trading partners, including Japan and Indonesia.

On Friday, all three of the major averages finished the day and week with gains. The blue-chip Dow climbed 208.01 points, or 0.47%, to settle at 44,901.92. The broad market S&P 500 gained 0.40% to close at 6,388.64, marking its fifth consecutive day of closing records and 14th record close of the year. The tech-focused Nasdaq Composite rose 0.24% to 21,108.32 for its 15th record close of the year.

“A healthy plethora of earnings beats, positive developments in U.S.-Japan trade relations, strong capex commentary, and a bullish ”AI Action Plan“ kept the enthusiasm of weeks' past stronger than ever,” Nick Savone of Morgan Stanley's institutional equity division said in a note over the weekend.

“As we push through the bulk of S&P 500 companies still due to report, the lower bar heading into this season has admittedly kept spirits high, but stock reactions still look most principally rooted in forward guidance — especially as investors brace, time and again, for the impact of these trade headlines to flow through.”

Stock volatility could increase in the near term, says UBS

Equities could face heightened volatility in the near-term, according to UBS, as the recent rally that pushed stocks to several record-highs has pushed up valuations. Investors also have to contend with the still somewhat unclear impact of tariffs and U.S. debt worry, the firm said.

“Investors who are already allocated to equities in line with their strategic benchmarks should consider implementing short-term hedges and those under allocated should prepare to add exposure on potential market dips in the weeks ahead,” UBS Global Wealth Management head of U.S. equities David Lefkowitz wrote on Monday.

“While near-term volatility is likely amid trade uncertainty, we expect US stocks to rise over the next 12 months,” he added.

Asia-Pacific markets end the day mixed

Asia-Pacific markets ended the day mixed Monday.

Meanwhile, South Korea's Kospi index advanced 0.42% to close at 3,209.52, while the small-cap Kosdaq declined 0.32% to 804.40.

Australia's S&P/ASX 200 benchmark increased by 0.36% to end the day at 8,697.70.

Over in India, the 50-stock benchmark Nifty 50 fell 0.67%, while the BSE Sensex index lost 0.64% as of 1.45 p.m. Indian Standard Time (4.15 a.m. ET).

Samsung shares surge more than 6% to over 10-month high

Shares of Samsung Electronics surged as much as 6.07% to hit 69,900 on Monday, its highest level since Sept. 5, 2024.

Shares of the South Korean memory chipmaker rallied following its $16.5 billion contract to supply semiconductors to Tesla, as confirmed by the latter's chief Elon Musk in a post on X.

Trump strikes EU trade deal for 15% tariffs on most goods

President Donald Trump and European Commission President Ursula von der Leyen on Sunday announced the U.S. has reached a trade deal with the European Union.

Trump said that the deal imposes a 15% tariff on most European goods to the U.S., including cars. The U.S. president previously had threatened 30% tariffs on goods from the EU.

Without providing details, Trump said the EU also agreed to purchase $750 billion worth of U.S. energy and invest an additional $600 billion worth of investments into the U.S. above current levels.

Stock futures open higher on Sunday night

U.S. equity futures opened higher on Sunday evening after President Donald Trump announced an EU trade deal with 15% tariffs.

Futures tied to the Dow Jones Industrial Average rose 161 points, or 0.36%. S&P 500 futures were also higher by 0.2% and Nasdaq 100 futures jumped 0.4%.