EU leaders respond to Trump’s tariffs, trade contracts
European Union leaders have responded to President Donald Trump’s 15% tariffs and a $600 million US investment contract, warning of a new trade order.
US stock futures rose high after the Broad S&P 500 won its sixth straight record high-close on July 28th. This was also the 15th high school in the S&P 500 this year.
The high-tech Nasdaq has also been closed at an all-time high.
Stocks were boosted after the European Union launched a trade deal with the US over the weekend. The deal included billions of dollars worth of investments in the US by the EU and 15% tariffs on most European goods entering the US.
Countries that do not agree to a trade agreement with the US must reach one by August 1st. Otherwise, President Donald Trump said the baseline global tariff rate would range from 15% to 20%.
At 6:10am ET, futures tied to the Blue Chip Dow added 0.15%, S&P 500 futures increased by 0.28%, and Nasdaq futures jumped 0.45%.
I’ll make a week or take a break
Since mid-April, the S&P 500 has skyrocketed nearly 28%, making it the fastest rebound in over 50 years. “We are pleased to announce that we are committed to providing a wide range of investments,” said Gene Goldman, chief investment officer at investment management firm Cetera.
The stock will face a triple threat this week that could justify recent rally or create headwinds. The first potential threat is revenue, particularly from Facebook Parent Meta, the so-called seven influential megacup technology companies, Microsoft, Amazon and Apple. Investors will consider whether artificial intelligence spending is slowing down at all. AI spending has boosted high-tech companies this year.
The second potential threat is the Federal Reserve Policy Council. “The Fed is likely to remain stable in July with opposition from Gov. Waller and Bowman, indicating that the two governors have been opposed for the first time in a meeting since 1993,” said Paul Eitelman, global chief investment strategist at Russell Investments. Eitelman is hoping for the next rate cut at the Fed’s September meeting.
The final potential threat is the employment report for July over the weekend. From 147,000 in June, it is expected to show 102,000 new jobs, down from 4.1% to 4.2% due to rising unemployment rates.
Company News
- Procter & Gamble CEO Jon Moeller has stepped down from his role and will become the company’s executive chairman on January 1, 2026. He will be replaced by Chief Operating Officer Shailesh Jejurikar.
- Cadence Design Systems outperformed analyst estimates in its second quarter results and issued positive guidance for the full year.
- Steel producer Nucor missed out on second quarter expectations. We also expect results for the current quarter to be “nominally” than in the second quarter.
- Appliance maker Whirlpool reported unfortunate quarter results and provided full-year guidance below analyst forecasts.
Cryptocurrency
PayPal has launched “Crypto With Crypto With Crypto” to allow consumers to use many types of cryptocurrencies to complete their purchases, allowing wallets such as Coinbase and Metamask to be used. Once the transaction is complete, payments will be automatically converted to Fiat or Stablecoin.
Payments with Crypto allow businesses to accept cross-border payments in cryptocurrencies and reduce the costs of accepting such transactions, PayPal said.
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.
