U.S. Futures Rise as Trade Deal Hopes Boost Markets

NEW YORK CITY, U.S. — U.S. equity futures rose on Sunday evening as Wall Street braced for a week filled with significant earnings reports from major tech companies, a crucial Federal Reserve meeting, and President Donald Trump’s Aug. 1 tariff deadline.

The Dow Jones Industrial Average gained 180 points, or 0.4%, in the pre-market trading. The Nasdaq and S&P 500 also saw increases of 0.3% and 0.4%, respectively. This positive momentum followed Trump’s announcement of a trade agreement with the European Union, aiming to avert a potential 30% tariff on most imports from the EU, the U.S.’s largest trading partner.

Last week concluded positively for Wall Street, with all three major averages closing higher. The Dow climbed 208.01 points to settle at 44,901.92, while the S&P 500 advanced by 0.40%, closing at 6,388.64. The tech-heavy Nasdaq rose 0.24% to 21,108.32, marking its 15th record close of the year.

Nick Savone of Morgan Stanley noted, “A healthy plethora of earnings beats, positive developments in U.S.-Japan trade relations, and a bullish AI Action Plan kept enthusiasm strong. Investors are hopeful as the bulk of S&P 500 companies prepare to report.”

This week, over 150 companies in the S&P 500 are expected to release their quarterly results, including major tech firms on Wednesday and Thursday. Investors will keenly analyze comments regarding AI spending to gauge the validity of this year’s significant investments.

The Federal Reserve will hold a two-day policy meeting this week, concluding on Wednesday. Although no changes to the current target range of 4.25% to 4.5% are expected, market participants will be on the lookout for indications regarding a potential rate cut in September.

On Thursday, the focus will turn to tariffs and inflation as traders await the June personal consumption expenditures price index, which is projected to show inflation rising to 2.4% year-over-year. The report will be key for market sentiment ahead of the Fed’s decisions.

The upcoming week also includes various job reports, including the Job Openings and Labor Turnover Survey on Tuesday and the critical July jobs report on Friday, with forecasts predicting the economy added 115,000 jobs in July.

As markets open, all eyes will remain on tariffs and trade developments, which are vital for shaping investor confidence.