US stocks mostly higher on Monday

The S&P 500 edged up 0.1% to trade at fresh record highs on Monday, while the Nasdaq gained 0.4% and the Dow Jones hovered near the flatline, as initial enthusiasm surrounding the newly announced US-EU trade deal began to wane. Under the agreement, EU exports to the United States will face a 15% tariff—significantly lower than the 30% rate previously threatened by President Trump.

While the deal was initially welcomed as a de-escalation in trade tensions, the limited scope of concessions and lack of clarity on implementation details left some investors cautious about its long-term impact.

Adding to the cautious tone, markets kept a close watch on the latest round of US-China trade talks, with negotiators from both sides scheduled to meet later in the day. Hopes are high that the two economic superpowers will extend their existing tariff truce, which has provided a temporary buffer to global markets amid broader geopolitical uncertainty. Still, sentiment remained mixed as investors awaited concrete outcomes from the discussions.

Energy stocks led gains in the S&P 500, fueled by rising crude oil prices and positive sentiment surrounding increased US energy exports under the EU deal. Notable performers included Exxon Mobil, which rose 1.2%, and Chevron, up 0.8%.

Defense and LNG-related equities also saw strong buying interest, buoyed by increased global military spending and export opportunities. Lockheed Martin climbed 1.5%, while GE Aerospace added 0.5%. In contrast, the materials sector posted the steepest losses of the session, pressured by concerns over global demand and weaker commodity prices.

Market participants also looked ahead to a pivotal week on the earnings calendar, with several tech giants—including Microsoft, Apple, Amazon, and Meta—set to report quarterly results. These reports are expected to offer critical insights into the health of the consumer and enterprise technology spending, as well as guidance for the second half of the year.

In addition, all eyes are on the Federal Reserve, which will announce its latest monetary policy decision later this week. While the central bank is widely expected to hold rates steady, investors will scrutinize Chair Powell’s commentary for signals on the future policy path amid a still-resilient labor market and sticky inflation. A busy slate of economic data, including GDP growth, inflation readings, and jobless claims, is also expected to influence sentiment as traders navigate the intersection of earnings, policy, and global trade dynamics.