Wall Street closed largely unchanged on Monday (Tuesday AEST), as investors shrugged off a newly announced trade agreement between the United States and the European Union and turned their attention to a packed week of economic and corporate catalysts.
The Dow Jones Industrial Average slipped 64.4 points, or 0.1%, to close at 44,837.8, the S&P 500 inched up just 1.1 points, or 0.02%, to end at 6,389.8, eking out a record high, while the tech-heavy Nasdaq Composite advanced 70.3 points, or 0.3%, also finishing at a fresh record high of 21,178.6.
Investor sentiment remained cautious despite Sunday’s announcement by President Donald Trump that the U.S. and E.U. had agreed to lower tariffs to 15%, averting the previously threatened 30% levy on imports from the E.U.
On Monday, Trump added that countries yet to renegotiate trade terms with the U.S. could face a global baseline tariff of between 15% and 20%.
Market focus, however, has shifted quickly to the busy week ahead. More than 150 S&P 500 companies are set to report earnings this week, including tech heavyweights Meta Platforms, Microsoft, Amazon and Apple.
Also in focus is the Federal Reserve’s two-day policy meeting, which concludes Wednesday (Thursday AEST). While the Fed is widely expected to leave its benchmark interest rate unchanged at 4.25% to 4.5%, markets are eager for signals about the potential for a rate cut at the September meeting.
On the economic front, Friday brings the July jobs report - a key indicator of the health of the labour market. Economists expect 110,000 jobs were added last month, down from 147,000 in June.
That same day also marks the deadline set by President Trump for trading partners to implement new tariff arrangements.
Additional economic data due this week include the Job Openings and Labor Turnover Survey (JOLTS), the ADP private payroll report, and weekly jobless claims.
On the bond markets, Treasury yields edged higher, with the 10-year yield rising 0.6% to 4.414% and the 2-year yield gaining 0.2% to 3.93%.
