S&P, Nasdaq Hit Records Ahead of Fed, Earnings Wave

U.S. stock market performance started the week with positive results because the S&P 500 and Nasdaq Composite achieved new record highs following a fresh U.S.-EU trade agreement that eliminated tariff concerns. The Dow Jones Industrial Average remains below its December peak while investors wait for upcoming earnings reports and the Federal Reserve's key decision.

The agreement between President Donald Trump and European Commission President Ursula von der Leyen established a 15% tariff rate on EU imports which represents half of the originally proposed amount while following previous trade agreements with Japan and other major partners. The S&P 500 index has risen more than 30% since April while the Nasdaq has increased by over 40% due to positive trade tension developments.

The upcoming week will test equity markets because major tech companies including Apple and Amazon and Microsoft and Meta will release their earnings reports. The unexpected rise in Alphabet's capital spending during the previous week caused a surge in AI market interest but Tesla's warning about short-term challenges introduced some uncertainty.

Market participants monitor the upcoming Federal Reserve policy meeting because they expect no interest rate adjustments. The CME data shows that markets predict a 63% probability of a Federal Reserve rate cut during September. The price increase of Ether to its highest point in seven months caused Ethereum-linked stocks to experience significant market growth.