Upbeat Trade Winds Propel Wall Street to New Highs

Wall Street futures saw an upward tick on Monday, bolstered by a U.S.–EU trade agreement that set a positive tone for a crucial week brimming with megacap earnings, a Federal Reserve meeting, and an impending U.S. tariff deadline.

The trade framework, announced by U.S. President Donald Trump and European Commission President Ursula von der Leyen, drastically reduced EU import tariffs to 15%, down from the 30% threat level expected from August 1. This deal already pushed the S&P 500 and Nasdaq to record closes on Friday, with the Dow nearing its all-time peak.

Amidst global efforts to finalize deals before Trump's tariff deadline, traders are eyeing the Federal Reserve's two-day policy meeting. A stable rate decision is anticipated, but cues on future cuts are pivotal as tariff-induced inflation and trade dynamics continue to exert pressure on markets.

(With inputs from agencies.)