Closing Recap

U.S. stocks finished little changed, with the S&P 500 notching a sixth straight record close in a quiet session, as markets celebrated a U.S.-EU trade deal but awaited a massive week of earnings, Fed news, and jobs data; the dollar surged, Treasury yields rose, while oil gained and gold fell. 

Key Takeaways 

• S&P 500 Hits 6th Straight Record High: The benchmark index eked out another record in a narrow trading range, showcasing strong underlying momentum. 
• U.S.-EU Trade Deal Boosts Sentiment: Markets started the week on a positive note after the U.S. and EU announced a trade agreement over the weekend, imposing a 15% tariff and averting a larger trade war. 
• Pivotal Week Ahead: Investor focus is now squarely on a packed week featuring a Fed rate decision, the July jobs report, and earnings from tech giants (AAPL, AMZN, META, MSFT). 
• Wall Street Turns More Bullish: Morgan Stanley and Oppenheimer both raised their S&P 500 price targets, citing easing trade uncertainty and solid earnings momentum. 
• Dollar Surges, Gold Falls: The U.S. dollar rallied to a one-week high on the positive trade news, which in turn pressured gold prices, sending them to a three-week low. 
• Oil Rallies: Crude oil prices gained over 2% on the improved global economic outlook stemming from the U.S.-EU deal. 
• Yields Rise: Treasury yields climbed, with the 10-year rising over 3 basis points, after two Treasury auctions saw mixed but decent demand. 

Market Overview 

U.S. equity markets started a pivotal week with another day of quiet gains, as the S&P 500 extended its remarkable streak to six consecutive record closing highs. The session was underpinned by positive news on the trade front, as the U.S. and European Union struck an agreement over the weekend that imposes a 15% tariff on most EU goods, a significant de-escalation from the previously threatened 30% levies. This deal, which follows a similar agreement with Japan, further reduces the “tariff wall of worry” that has hung over markets, boosting investor confidence. President Trump also noted the EU plans to invest $600 billion in the U.S. as part of the pact. 

Index	Up/Down	% Change	Last
DJ Industrials	-64.36	-0.0014	44837
S&P 500	1.15	0.0002	6389
Nasdaq	70.27	0.0033	21178
Russell 2000	-4.34	-0.0019	2256

Trading was relatively subdued and range-bound, with investors likely positioning ahead of what could be one of the most consequential weeks of the year. The calendar is packed with a Federal Reserve rate meeting, the official July jobs report, and earnings reports from a significant portion of the S&P 500, including mega-cap tech leaders Apple, Amazon, Meta, and Microsoft. 

With the market at all-time highs, Wall Street strategists are growing more bullish. Today, both Morgan Stanley and Oppenheimer raised their year-end S&P 500 price targets, citing the easing of trade uncertainty and a resilient U.S. economy. This optimism was reflected in the price action, with stocks holding gains despite some intra-day choppiness.

Economic Calendar

No major U.S. economic data releases are scheduled for today. The focus remains on the heavy slate of events for the rest of the week. Key This Week: 

• FOMC Interest Rate Decision (Wednesday). 
• July Jobs Report (JOLTS, ADP, Nonfarm Payrolls). 
• Earnings from Apple, Amazon, Meta, Microsoft. 
• August 1st Global Trade Deal Deadline. 
• Central Bank Meetings: Bank of Canada, Bank of Japan.

Commodities, Currencies, and Treasuries 

Gold prices fell, with August futures down $24.40 (-0.73%) to settle at $3,311.20, hitting a three-week low. The decline was driven by improved risk sentiment following the U.S.-EU trade deal and a strong rally in the U.S. dollar, which makes gold more expensive for foreign buyers. Crude oil prices rallied strongly on the positive trade news, with WTI gaining $1.55 (+2.38%) to settle at $66.71/bbl. The easing of trade tensions between two major economic blocs boosts the outlook for global growth and energy demand. 

Asset	Up/Down	Unit / % Change	Last
WTI Crude	1.55	USD/bbl	66.71
Brent	1.6	USD/bbl	70.04
Gold	-24.4	USD/oz	3311.2
EUR/USD	-0.0146	USD	1.1595
USD/JPY	0.81	JPY	148.47
10-Year Note	0.032	%	0.04418

The U.S. Dollar Index (DXY) rallied to a one-week high, surging particularly against the Euro, which fell over 1.25% following the trade deal announcement. Treasury yields rose, with the 10-year yield climbing over 3 basis points to 4.418%, as investors moved out of safe-haven bonds. Two Treasury auctions (2-year and 5-year) saw decent, though not spectacular, demand.

Looking Ahead 

The market is bracing for a flood of catalysts this week. The Federal Reserve’s policy decision on Wednesday and Chair Powell’s subsequent press conference will be critical, though no change in rates is expected. The official July jobs report on Friday will provide the most comprehensive look at the U.S. labor market. In between, earnings reports from Apple, Amazon, Meta, and Microsoft will be major drivers for the tech sector and the broader market. And while the EU deal is a positive, the August 1st deadline for other global trade deals remains a key focus.