U.S. stock futures indicate a slightly higher open on Monday, suggesting that the positive momentum from recent sessions may carry forward.
Investor optimism follows news of a last-minute trade deal between the U.S. and the European Union, alongside reports that the U.S. and China are expected to prolong their tariff ceasefire by an additional 90 days.
The new U.S.-EU agreement features a 15% tariff on European imports, a significant reduction from the initially proposed 30%.
In return, the EU has pledged to purchase $750 billion in U.S. energy and boost investments in the American economy by $600 billion.
Despite the upbeat trade news, trading volume might remain muted as investors await the Federal Reserve’s upcoming monetary policy announcement later this week.
Although the Fed is widely expected to keep interest rates steady, the statement could influence future rate expectations.
Market attention will also turn to the Labor Department’s upcoming jobs report and earnings releases from key tech giants including Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Meta Platforms (NASDAQ:META).
Last week ended on a high note for U.S. markets, with the Dow recovering losses from the previous day, while the Nasdaq and S&P 500 closed at new record highs.
On Friday, all three indexes opened modestly higher and maintained gains throughout the session.
The Dow added 208.01 points, or 0.5%, finishing at 44,901.92. The Nasdaq rose 50.36 points, or 0.2%, closing at 21,108.32, and the S&P 500 gained 25.29 points, or 0.4%, ending at 6,388.64.
This strength reflects growing confidence that trade agreements will be finalized ahead of President Donald Trump’s August 1 deadline for extending “reciprocal tariffs.”
With just days remaining, several U.S. trade partners are racing to negotiate deals to avoid steep tariff increases on their exports starting August 1.
In contrast, European markets showed less enthusiasm, weighed down by uncertainty surrounding the trade talks and some disappointing earnings reports.
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