S&P 500 and Nasdaq 100 Inch Higher on US-EU Trade Deal, Trump Prepares Global Tariffs

The S&P 500 (SPX) and Nasdaq 100 (NDX) edged up despite President Trump's announcement of a U.S.-EU trade deal, which includes the EU buying $750 billion worth of U.S. energy and investing $600 billion in the U.S. by 2028. However, Trump is also imposing a 15% tariff on imported EU goods and considering global tariffs of 15% to 20% for countries that do not secure a trade deal with the U.S. Oppenheimer raised its year-end target for the SPX to 7,100 from 5,950, citing trade deals with Japan and the EU.

The S&P 500 (SPX) and Nasdaq 100 (NDX) closed slightly higher on Monday, July 1, 2025, despite President Trump's announcement of a U.S.-EU trade deal. The deal includes the EU's commitment to buy $750 billion worth of U.S. energy and invest $600 billion in the U.S. by 2028. However, Trump also announced a 15% tariff on imported EU goods and a global baseline tariff of 15% to 20% for countries without a trade deal with the U.S. [1]

The S&P 500 added 0.02% to close at 6,389.77, while the Nasdaq Composite gained 0.33% to 21,178.58. The Dow Jones Industrial Average slipped 64.36 points, or 0.14%, to end at 44,837.56. [1]

Investors are gearing up for a week filled with market catalysts, including the Federal Reserve's rate decision and Friday's jobs report. More than 150 companies in the S&P 500 are expected to report their quarterly results, with key names like Meta Platforms and Microsoft set to release their earnings on Wednesday. [1]

Oppenheimer raised its year-end target for the S&P 500 to 7,100 from 5,950, citing trade deals with Japan and the EU. However, the impact of Trump's tariffs and the ongoing trade negotiations with China remain uncertain. [1]

The Federal Reserve's two-day policy meeting, concluding on Wednesday, is expected to keep its key short-term interest rate at its current target range of 4.25% to 4.5%. Traders will be looking for clues about a potential rate cut at the September meeting. [1]

Friday's jobs report is expected to show the economy added 102,000 jobs in July, down from 147,000 in June. This data will provide insight into the health of the economy. [1]

References:
[1] https://www.cnbc.com/2025/07/27/stock-market-today-live-updates.html