NEW YORK, July 28 (Reuters) – The S&P 500 edged higher to eke out a record high close for a sixth straight session on Monday, while the Nasdaq also advanced to a closing record in choppy trade as investors gauged the U.S.-EU trade pact and prepared for a week of major market catalysts.
U.S. President Donald Trump and European Commission President Ursula von der Leyen unveiled a trade framework on Sunday, slashing EU import tariffs to 15% – half the previously threatened rate that was scheduled to take effect on August 1. Still, France denounced the deal as a “submission.”
The deal is the latest announcement in recent days on U.S. trade agreements with countries such as Japan and Indonesia. Top U.S. and Chinese economic officials resumed talks in Stockholm to resolve a trade war between the world’s two largest economies.
“It’s feel-good in the sense that it doesn’t represent Armageddon, if the draconian tariffs went into place,” said Scott Welch, chief investment officer at Certuity in Potomac, Maryland.
“But it’s much too soon to pass judgment on the long-term effects on how that will play out. It’s better than the alternative for sure, and so I hope they continue.”
The Dow Jones Industrial Average (.DJI), opens new tab fell 64.36 points, or 0.14%, to 44,837.56, the S&P 500 (.SPX), opens new tab gained 1.13 points, or 0.02%, to 6,389.77 and the Nasdaq Composite (.IXIC), opens new tab gained 70.27 points, or 0.33%, to 21,178.58.
The benchmark S&P 500 index has now notched six straight daily closing records, en route to its 15th closing record of the year. Stocks have rebounded strongly from a selloff that began in early April when Trump announced a slew of tariffs.
Mounting enthusiasm over the potential for AI technology has helped lift stocks, along with the realization of some trade pacts and early indications corporate earnings season may be better than anticipated.
Investors now await a policy announcement from the Federal Reserve on Wednesday. The central bank is widely expected to keep U.S. rates unchanged even as Trump has ramped up pressure on Fed Chair Jerome Powell to lower borrowing costs.