US Stock Futures Rise on EU Trade Deal Hopes, Earnings Week Ahead

US stock futures rise on a new US-EU trade agreement and anticipation of key earnings reports from Apple, Microsoft, Amazon, and Meta. Investors show optimism ahead of a busy week of earnings. Biggest movers include Tesla, Alibaba, Nike, and more.

US stock futures surged on Monday, July 2, 2025, following the announcement of a new trade agreement between the United States and the European Union. The agreement, which imposes a 15% tariff on EU imports, has lifted investor sentiment and provided clarity amidst a week of key policy meetings by the Federal Reserve and the Bank of Japan. The S&P 500 futures rose 0.4%, while the Nasdaq futures gained 0.5% [1].

Investors are eagerly anticipating the upcoming earnings season, with major tech companies including Apple, Microsoft, Amazon, and Meta set to report their second-quarter results. The earnings reports are expected to provide further insights into the economic health of these companies and the broader market. The Australian dollar, often seen as a proxy for risk appetite, was at $0.657, hovering around the near eight-month peak scaled last week [2].

The US-EU trade agreement has been seen as a positive development by markets, as it defuses a significant tail-risk and provides stability to trade policy. While the baseline 15% tariff is still viewed as high by some in Europe, it is better than the previously threatened 30% rate. The agreement is expected to help companies navigate trade uncertainty and prevent a larger trade war between the two allies, who account for almost a third of global trade [1].

Investors are also keeping an eye on the monetary policy meetings scheduled for the week. The Federal Reserve and the Bank of Japan are expected to maintain their current rates, but comments from officials will be crucial for gauging the interest rate path. The trade deal with Japan has opened the door for the BOJ to raise rates again this year, while the Fed is likely to be cautious on any rate cuts until more data on inflation becomes available [2].

The US economy contracted in the first quarter, but investors are optimistic about the upcoming jobs report and corporate earnings, which are expected to provide a boost to stocks. The Commerce Department data due on Wednesday will showcase the initial reading of the economy's growth in the second quarter. The Federal Reserve is expected to hold rates steady at this meeting, with analysts predicting a rate-cutting cycle to begin in September [1].

In commodities, oil prices rose following the US-EU trade agreement, with Brent crude futures and US West Texas Intermediate crude both increasing by 0.5%. Gold prices, however, fell on Monday to their lowest in nearly two weeks due to reduced appetite for safe havens [2].

Overall, the week ahead promises to be busy for investors, with a focus on earnings reports and monetary policy decisions. The new US-EU trade agreement has provided some clarity and optimism, but investors will continue to monitor economic data and geopolitical developments.

References:
[1] https://www.cnn.com/2025/07/28/investing/us-stock-market
[2] https://www.irishtimes.com/business/2025/07/28/global-markets-rise-after-us-eu-trade-agreement/