Here’s a breakdown of the key details from the provided text:
Trade agreement with the EU:
Agreement Reached: The US has reached an agreement with the European Union to lower tariffs.
New Tariff Rate: Tariffs will be lowered to 15%.
previous Threat: The president had previously threatened 30% tariffs on most imported goods from the EU.
Global Baseline Tariff: For countries that haven’t renegotiated, the global baseline tariff will likely be between 15% to 20%.
Market Sentiment and Upcoming Week:
Bullish Sentiment with Hesitation: While market sentiment is “increasingly bullish,” there’s some hesitation about buying stocks at record highs due to the upcoming busy week.
Busy Week Ahead: This week is described as one of the “busiest weeks of the entire year” for Wall Street.
Key Events This Week:
Earnings Reports:
Major tech companies will release their quarterly results. “Splendid Seven” companies reporting include:
Meta Platforms and Microsoft (Wednesday)
Amazon and Apple (Thursday)
Investors will be looking for comments on AI spending.
Federal Reserve Meeting:
The Fed will hold its two-day policy meeting, concluding on wednesday.
interest Rates: The Fed is expected to keep its key short-term interest rate at the current target range of 4.25%-4.5%.
Rate Cut Clues: Investors will be seeking clues about potential rate cuts in September.
Economic Data:
Wednesday: First estimate of second-quarter economic growth (real GDP). Economists expect a 2.3% annualized pace.
Thursday: June Personal Consumption Expenditures (PCE) price index (Fed’s preferred inflation measure).
Core inflation expected to hold steady at 2.7%.
Headline inflation expected to rise to 2.5%. Jobs Data:
Tuesday: Job Openings and Labor Turnover Survey (JOLTS).
Wednesday: ADP private payrolls report.
Thursday: Initial jobless claims.
Friday: July jobs report.
Economy expected to add 102,000 jobs (down from 147,000 in June).
Unemployment rate expected to rise slightly to 4.2% (from 4.1%).
Analyst Quotes:
Adam Crisafulli (Vital Knowledge): Highlights hesitation to chase stocks at record highs due to the busy week.
Jay Woods (Freedom Capital Markets): Describes the week as one “traders dream of and also fear,” with many “adventures” and questions about what will be the biggest headline (FOMC decision vs. Fed Chair press conference).
