On Monday, stock futures remained relatively unchanged, following the recent performance of the S&P 500 and Nasdaq Composite, which both achieved record highs. Specifically, S&P 500 futures and Nasdaq 100 futures each saw an increase of approximately 0.1%. Meanwhile, futures associated with the Dow Jones Industrial Average added a modest 6 points. This activity comes after the S&P 500 and Nasdaq Composite reached new all-time and closing highs during the trading session on Monday.
The S&P 500 marked its 15th record close in 2025, finishing the day slightly above the flatline. In contrast, the Dow Jones Industrial Average dipped by 0.1%, while the Nasdaq ended the day with a gain of 0.3%. Earlier in the day, the broad market index experienced moderate gains, attributed largely to President Donald Trump's announcement on Sunday regarding a new trade deal with the European Union. This agreement will introduce a 15% tariff on most goods imported from Europe, including automobiles.
President Trump also indicated that the baseline global tariff rate would range between 15% to 20%. While investors appeared to overlook the implications of the U.S.-EU trade deal, their attention will now shift to potential agreements with other countries, notably China, ahead of Friday's tariff deadline. On Monday, top U.S. and Chinese officials convened in Stockholm for another round of trade talks.
This week, tariffs and inflation will remain key focal points. The Federal Reserve is set to announce its decision on interest rates on Wednesday after a two-day policy meeting. Analysts widely anticipate that the Fed will maintain rates within the range of 4.25% to 4.5%. Additionally, this week is significant as it marks the busiest period of the earnings season, with over 150 S&P 500 companies scheduled to report their results.
Among the companies expected to report are several from the Magnificent Seven, including Meta Platforms and Microsoft on Wednesday, and Amazon and Apple on Thursday. Other notable companies reporting prior to the market opening on Tuesday include UPS, Procter & Gamble, Merck, and Boeing. Louis Navellier, founder and chief investment officer at Navellier & Associates, stated in a recent note that if earnings reports are consistent with expectations and the Fed delivers dovish comments, we may witness further new highs by the end of the week.
As it stands, 170 S&P 500 companies have released their quarterly results, with more than 83% surpassing expectations, according to FactSet data. This week is poised to deliver significant economic data, including the Job Openings and Labor Turnover Survey (JOLTS) on Tuesday, the ADP private payrolls report on Wednesday, and weekly jobless claims on Thursday. The nonfarm payrolls report for July, due on Friday, is anticipated to be a crucial indicator for traders, with economists polled by Dow Jones forecasting an addition of 100,000 jobs in July, a decrease from the 147,000 jobs added in June. The unemployment rate is expected to rise slightly to 4.2% from 4.1%.
