Wall Street Near Record High Before Fed Decision/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks hovered near record highs as investors awaited key earnings reports and Federal Reserve decisions. Wall Street reacted to a softer EU trade tariff announcement and a major LNG export deal. Tesla, Samsung, and LNG stocks led gains amid a busy and pivotal week for the markets.
Wall Street Outlook Quick Looks
- S&P 500 opened slightly higher after setting multiple records
- Dow Jones dipped marginally; Nasdaq rose 0.3%
- U.S. and EU agree to 15% car/product tariff — lower than Trump’s prior threats
- LNG firms soar after EU agrees to $750B U.S. energy import deal
- Tesla and Samsung announce potential $16.5B chip partnership
- Key earnings expected from Apple, Amazon, Meta, Microsoft
- Federal Reserve to announce interest rate decision on Wednesday
- Multiple U.S. economic indicators due this week: GDP, jobs, inflation
- Fed expected to hold rates until September despite Trump’s pressure
- Global markets mixed; China stocks rise ahead of trade talks
Deep Look: Wall Street Holds Steady Amid Packed Economic Week
Wall Street began the week hovering just shy of historic highs as investors braced for a cascade of key economic reports, Federal Reserve decisions, and earnings updates from some of the world’s largest companies.
On Monday morning, the S&P 500 ticked up 0.1%, following a streak of record-breaking days last week. The Dow Jones Industrial Average slipped by 19 points, less than 0.1%, while the Nasdaq Composite advanced by 0.3%, continuing its own record-setting momentum.
Markets reacted to the latest trade update between the U.S. and European Union. The two sides agreed to a 15% tariff on cars and certain other goods, a figure substantially lower than the steeper tariffs President Donald Trump had threatened. While the announcement offered temporary relief to markets, the lack of finalized terms leaves uncertainty lingering.
One of the session’s biggest boosts came from energy stocks. After the European Commission confirmed the EU would buy $750 billion worth of U.S. liquefied natural gas (LNG) over the next three years, shares of major LNG exporters surged. Cheniere Energy jumped 4.2%, and NextDecade rose 3.4%, as the deal marks a major shift in Europe’s effort to reduce dependency on Russian energy sources.
Meanwhile, Tesla shares inched 0.2% higher following CEO Elon Musk’s announcement of a $16.5 billion chip supply deal with South Korea’s Samsung Electronics. Samsung’s stock responded with a 6.8% rally on the Seoul exchange.
Still, the optimism is tempered by what many experts consider one of the busiest and most influential weeks for financial markets this year. Chris Larkin, managing director at E-Trade from Morgan Stanley, called it “about as busy as a week can get in the markets.”
Nearly one-third of the S&P 500 companies are set to report earnings this week, including tech giants Apple, Amazon, Meta Platforms, and Microsoft. Due to their size and market influence, these stocks alone could move the overall S&P 500 significantly. Microsoft, for instance, is now valued at approximately $3.8 trillion.
Investors are also closely watching the Federal Reserve, which will announce its interest rate decision on Wednesday. President Trump has openly pressured the Fed to cut rates, aiming to stimulate the economy ahead of the election cycle. However, Fed Chair Jerome Powell has emphasized a wait-and-see approach, citing a need for more data on how tariffs and inflation are evolving.
The Fed has kept interest rates steady in 2025 after a series of cuts at the end of 2024. Most analysts expect the Fed to resume cuts in September, although some of Trump’s appointees could dissent in this week’s vote.
In the days ahead, the market will also digest a slew of economic indicators:
- Tuesday brings consumer confidence and job openings data.
- Wednesday will reveal Q2 GDP growth, expected to slow from Q1.
- Thursday features the Fed’s preferred inflation metric. A softer reading could pave the way for a rate cut, while a hotter report might delay action.
- Friday wraps up with the monthly jobs report, providing insight into the labor market’s resilience.
Bond markets were calm as investors waited for direction. The 10-year Treasury yield held steady at 4.40%, while the 2-year yield, more sensitive to Fed moves, edged up slightly to 3.92%.
Globally, markets were mixed. European indices wavered slightly following the announcement of the EU-U.S. tariff framework. In Asia, Chinese stocks rose in anticipation of trade talks with the U.S. in Sweden, with Hong Kong’s Hang Seng up 0.7% and Shanghai’s index gaining 0.1%.
Japan’s Nikkei 225, however, dropped 1.1% — one of the worst performances globally — amid skepticism around the previously announced $550 billion investment deal between Japan and the U.S. Officials confirmed that many of the deal’s details are still being hashed out, with no formal documentation finalized.
As markets await clarity on these multiple fronts, the tone remains cautiously optimistic — but any surprise, from earnings to inflation, could trigger quick moves.
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