Nasdaq Opens 0.3% Higher As US–EU Deal Kicks off Pivotal Week

U.S. stock indexes opened higher on Monday as investors showed limited enthusiasm over a trade deal announced between the U.S. and the European Union.

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.

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%.