Dateline: NEW YORK, July 28, 2025 – The S&P 500 and Nasdaq opened at record highs Monday after a US-EU trade agreement slashed tariffs from 30% to 15%.
The deal removes a major trade war threat that had weighed on multinational corporations and exporters across both regions.
- S&P 500 surges past 6,400 for first time
- US-EU tariffs cut from 30% to 15%
- Tech stocks lead rally with Nvidia, Tesla gains
Market Reaction & Context
The S&P 500 rose 0.08% while the Nasdaq gained 0.28%, marking the 14th record close for the benchmark index in 20251. The Dow Jones Industrial Average lagged, declining 0.1% but remained near record territory2.
Technology and energy stocks drove the advance, with Nvidia and Tesla posting notable gains alongside Cheniere Energy3. The dollar strengthened against major trading partners following the agreement4.
Trade Deal Details
The breakthrough accord between Washington and Brussels averts a potentially damaging trade war by reducing mutual tariffs to 15% from the previously threatened 30% level5. The agreement covers key sectors including automotive, technology, and industrial goods.
Wall Street futures had climbed in pre-market trading as news of the deal boosted sentiment at the start of a week packed with major earnings releases and Federal Reserve policy decisions6. The euro slid against the dollar despite the positive trade developments7.
Investor Optimism
The trade agreement builds on solid quarterly earnings momentum that has already driven multiple record highs for major US indices this year8. Analysts said the deal removes uncertainty that had clouded the outlook for exporters and multinational companies.
Nike shares rose after JP Morgan upgraded the athletic apparel giant, adding to the positive sentiment across consumer discretionary stocks9. The broader market reaction remained modest compared to the scale of recent record-setting sessions.
Looking Ahead
Investors now turn attention to a pivotal week featuring key earnings reports from major technology companies and the Federal Reserve’s policy meeting. The trade deal provides a supportive backdrop as markets navigate these potential catalysts.
The agreement marks a significant diplomatic breakthrough after months of escalating trade tensions between the world’s two largest economic blocs.
Not investment advice. For informational purposes only.
References
1 (July 28, 2025). “S&P, Nasdaq at record highs as US-EU trade deal sparks – Reuters”. Reuters. Retrieved July 28, 2025.
2 (July 28, 2025). “Stocks rise modestly, euro slides after US-EU trade deal”. Reuters. Retrieved July 28, 2025.
3 (July 28, 2025). “S&P, Nasdaq open at record highs on US-EU deal optimism”. Economic Times. Retrieved July 28, 2025.
4 (July 28, 2025). “S&P, Nasdaq at record highs as US-EU trade deal sparks optimism”. Market Screener. Retrieved July 28, 2025.
5 (July 28, 2025). “US stock market rallies as US–EU trade deal, Nvidia and Tesla”. Economic Times. Retrieved July 28, 2025.
6 (July 28, 2025). “Wall Street futures boosted by US-EU trade deal ahead of action”. Yahoo Finance. Retrieved July 28, 2025.
7 (July 28, 2025). “Dollar gains against major peers after US-EU trade pact”. Market Screener. Retrieved July 28, 2025.
8 (July 28, 2025). “U.S.-EU Tariff Deal Sparks S&P 500 Surge Past 6,400 Record High”. AInvest. Retrieved July 28, 2025.
9 (July 28, 2025). “S&P, Nasdaq at record highs as US-EU trade deal sparks”. SEPE. Retrieved July 28, 2025.