Markets React as U.S.-EU Trade Deal Calms Tariff Turmoil

The financial markets exhibited mixed movements on Monday, with the S&P 500 and Nasdaq experiencing modest gains after hitting record levels earlier in the day. Investors seemed relieved after the U.S. reached a tariff-cutting trade arrangement with the European Union, avoiding a potentially escalating trade conflict.

The agreement, detailed by President Donald Trump and EU Commission President Ursula von der Leyen, will see EU import tariffs reduce to 15%, significantly lower than the initially proposed rate. Market participants are now turning their attention to upcoming earnings reports from leading tech companies that could significantly impact market sentiment.

Amidst the backdrop of shifting trade dynamics, Wall Street experienced a week of robust gains, buoyed by international deals and positive movement in AI investments, even as certain automotive sectors faced challenges. The Federal Reserve's policy meeting later this week is expected to keep interest rates steady, as economic indicators are closely monitored for tariff impacts.

(With inputs from agencies.)