In Short:
– S&P 500 fell 0.1% despite new EU trade deal; traders remain cautious before key Federal Reserve meeting.
– Over 150 companies are set to report earnings this week, with focus on AI spending and job growth.

The S&P 500 declined on Monday, despite a newly announced trade deal with the European Union.

Traders showed limited enthusiasm ahead of a significant week for the markets, which includes the Federal Reserve’s rate decision.

The index fell by 0.1%, having previously reached a record high. The Dow Jones Industrial Average dropped 110 points, while the Nasdaq Composite slightly increased. Investors are preparing for a heavy earnings season, with more than 150 companies, including Meta Platforms and Microsoft, expected to report results. Attention will be on comments regarding AI spending.

Market Overview

The Federal Reserve’s two-day policy meeting will conclude on Wednesday. Analysts anticipate that the central bank will maintain interest rates, while also looking for hints about potential future rate cuts. Additionally, Friday’s jobs report is anticipated to show a decrease in job additions for July.

Daniel Skelly from Morgan Stanley raised concerns about investor complacency amidst market highs. President Trump announced a tariff agreement with the EU, reducing rates to 15%.

This week presents significant market events, causing both excitement and apprehension among traders.