28.07.2025 04:40
A significant surge in the S&P 500 index propelled it above the 6,400 mark late Sunday night. This dramatic increase followed a White House announcement confirming a finalized trade agreement between the United States and the European Union. The agreement resulted in a reduction of tariffs on EU imports from a previously threatened 30% to a significantly lower 15%.
This positive news spurred a widespread market rally. Futures contracts across various indices experienced substantial gains, including an 180-point (0.4%) jump in Dow Jones Industrial Average futures, a 0.3% rise in S&P 500 futures, and a 0.4% increase in Nasdaq 100 futures. Concurrently, Bitcoin's price rebounded, exceeding $120,000 for the first time in almost two weeks. The cryptocurrency's resurgence is directly attributed to the improved market sentiment generated by the tariff deal.
The averted threat of substantial tariffs on EU imports injected a significant dose of risk appetite into the market. Before the announcement, Bitcoin had fluctuated between $114,000 and $119,000. The price increase following the agreement left Bitcoin just $3,080 short of its all-time high. This impressive recovery highlights the cryptocurrency's sensitivity to global economic shifts.
This week promises to be pivotal for market performance. Wall Street investors will closely monitor earnings reports from leading technology firms. The upcoming Federal Reserve meeting, alongside anticipated inflation data, will further influence market sentiment. An additional pressure point is President Trump's August 1st tariff deadline on other trade matters, further highlighting the uncertainty remaining in the global economic climate.
Even prior to Sunday's positive development, US equities had concluded the previous week on a strong note. Friday’s trading saw the Dow Jones Industrial Average gain 208.01 points, closing at 44,901.92. The S&P 500 reached a new high of 6,388.64, marking its fourteenth record close of the year and its fifth consecutive day of record highs. The Nasdaq Composite also hit a record close at 21,108.32, its fifteenth record close of the year. This pre-existing positive momentum, fueled by strong corporate earnings and successful trade negotiations with Japan and Indonesia, created a favorable backdrop for the Monday rally. The overall market upturn extended beyond equities, with commodities also experiencing positive gains; the impact on Gold, for instance, requires further observation.
