US Stock Market Today: S&P 500 and Nasdaq Open at Record Highs After EU Trade Deal
The US stock market opened at record highs on Monday after the highly-anticipated trade deal was announced between the US and the European Union (EU) block. The trade agreement boosted investor sentiment, kick-starting a pivotal week featuring megacap earnings, US Federal Reserve policy decision, and a looming tariff deadline.
S&P 500 and Nasdaq Open at Record Highs
The S&P 500 rose 9.0 points, or 0.14%, to 6397.69, while the Nasdaq Composite index rose 68.1 points, or 0.32%, to 21176.40 at opening. The blue-chip index was about 215 points away from its December 4 record high.
Megacap Earnings and US Federal Reserve Policy Decision in Focus
More than 150 companies in the S&P 500 are due to post their quarterly results. The market’s remarkable rally faces a crucial test in the days ahead, as ‘Magnificent Seven’ heavyweights Meta, Microsoft, Amazon, and Apple, prepare to report their earnings, potentially setting the tone for Wall Street.
Other Stocks in Focus
Ether-linked companies GameSquare and BTCS were up 4% each after Ethereum prices hit over a seven-month high. Nike rose 2.1% after JPMorgan upgraded the stock to ‘overweight’ from ‘neutral’ and said investors should ‘just buy it’. Tesla rose 0.4% after the automaker signed a $16.5 billion deal to source chips from Samsung Electronics.
EU Trade Deal Details
The framework trade deal, which European Commission President Ursula von der Leyen described as the best the bloc could get, will impose a 15% import tariff on most EU goods and see the EU spend $600 billion on U.S. investments while opening up some important parts of its market.
US Federal Reserve and Bank of Japan Interest Rate Decisions
Traders are waiting for interest rate decisions from both the US Federal Reserve and Bank of Japan, monthly US non-farm payrolls. While the US Fed and the BOJ are expected to maintain rates, comments from the officials will be crucial for investors to gauge the interest rate path.
Conclusion
The US stock market opened at record highs on Monday after the highly-anticipated trade deal was announced between the US and the European Union (EU) block. The trade agreement boosted investor sentiment, kick-starting a pivotal week featuring megacap earnings, US Federal Reserve policy decision, and a looming tariff deadline.
