Wall Street's Optimism Soars with New U.S.-EU Trade Agreement

Wall Street appeared poised for gains on Monday as a new trade pact between the U.S. and the European Union infused optimism into the markets. The deal, announced by President Trump and EU Commission President Ursula von der Leyen, cuts EU import tariffs from 30% to 15%, ahead of a crucial week for financial markets.

This agreement follows a series of partnerships with important U.S. trade allies like Japan, Indonesia, and the Philippines, energizing American financial markets. The S&P 500 and Nasdaq achieved record highs last week, and futures projected new peaks, fueled by optimism around the potential avoidance of a global trade war.

Ahead, significant market-moving events include tech giants' earnings, U.S.-China negotiations, and the Federal Reserve's policy meeting. Traders anticipate the Fed to maintain interest rates, with global markets and investors closely watching economic indicators like the PCE report for inflation insights. Meanwhile, corporate developments, such as Tesla's partnership with Samsung and Nike's stock upgrade, continue to influence market dynamics.

(With inputs from agencies.)