A record-setting rally in US stocks appears poised for further gains as global markets respond positively to a new trade agreement between the European Union and President Donald Trump. The deal has helped ease fears of an escalating US-European trade war, fueling investor confidence.
Futures for the S&P 500 rose 0.4%, building on last week’s string of five consecutive all-time highs. European stock contracts jumped 1%, buoyed by the breakthrough agreement, despite it imposing 15% tariffs on most EU exports.
Meanwhile, the MSCI All Country World Index traded at a record level, although Asian shares were largely unchanged. In currency markets, the euro strengthened against the US dollar, reflecting optimism about the eurozone’s economic positioning post-deal.
Crude oil prices edged up 0.3%, while US Treasuries and a dollar index tracking the greenback remained steady.
The rally follows a period of recovery from April lows, with markets drawing confidence from the trade pact and speculation that the US and China will extend their trade truce—further reducing risks tied to President Trump’s tariff agenda.
However, market sentiment will face critical tests in the coming days with a busy economic calendar, including:
- Key economic data releases
- Monetary policy meetings by the Federal Reserve and Bank of Japan
- Earnings reports from major megacap companies
These developments could shape the global economic outlook and determine whether recent momentum in equities is sustainable.
