The U.S. stock market is experiencing a robust midday session on Monday, July 28, 2025, with major indexes hitting fresh record highs, propelled by a significant U.S.-European Union trade agreement and a palpable sense of anticipation for a packed week of corporate earnings and key economic data. The positive momentum from last week, which saw the S&P 500 close at a record high every day, continues to fuel investor confidence.
Midday Market Performance and Momentum
As of midday trading, both the S&P 500 and the tech-heavy Nasdaq Composite are showing strong gains, building on their impressive performance from the opening minutes of the session. The S&P 500 is up 0.1%, while the Nasdaq Composite has climbed 0.3%, both reaching new all-time highs. The Dow Jones Industrial Average, after a fractional dip earlier, is also trading positively, reflecting a broad-based optimism across sectors. This upward trajectory is largely attributed to the easing of global trade tensions following the weekend's U.S.-EU trade deal and continued strength in corporate earnings and economic indicators.
The U.S. and European Union announced on Sunday that they had reached an agreement, under which most imports from the 27-country bloc would face a 15% tariff, a significant reduction from the 30% rate previously threatened by President Donald Trump. Furthermore, the EU has committed to purchasing $750 billion worth of energy from the U.S., alongside an unspecified amount of military equipment, further cementing the positive sentiment. This strategic pause in transatlantic trade tensions has been widely welcomed by the market, providing a clearer framework for future commerce and reducing geopolitical uncertainty.
Important Upcoming Market Events
This week is poised to be extraordinarily busy for financial markets, with a confluence of major events that could significantly impact trading patterns. Investors are keenly awaiting crucial economic data, the Federal Reserve's latest policy decision, and a deluge of corporate earnings reports, particularly from the "Magnificent Seven" tech giants.
The Federal Reserve is scheduled to make its interest rate decision on Wednesday. While the central bank is widely expected to keep interest rates on hold at their current range of 4.25%-4.5%, market participants will be scrutinizing the accompanying statements for any hints regarding a potential rate cut later in the year, possibly as early as September. This decision comes amidst ongoing discussions about inflation and the overall health of the economy.
On the economic data front, several key releases are anticipated. Investors are particularly focused on the second-quarter GDP data, which will provide a comprehensive look at the nation's economic growth. Additionally, a crucial inflation reading, the June Personal Consumption Expenditures (PCE) index, the Fed's preferred gauge of inflation, is slated for release on Thursday. The July jobs report, including nonfarm payrolls, JOLTS (Job Openings and Labor Turnover Survey), and weekly jobless claims, will also be closely watched for signs of labor market dynamics. Furthermore, the ISM Manufacturing PMI data and the final reading for the July S&P Global US Manufacturing PMI are due on Friday, offering up-to-date insights into industrial trends.
This week marks the peak of the second-quarter earnings season, with over 150 S&P 500 companies scheduled to report. The spotlight will undoubtedly be on four of the "Magnificent Seven" technology companies. Microsoft (MSFT) and Meta Platforms (META) are set to release their quarterly results after the market close on Wednesday. Following them, Amazon (AMZN) and Apple (AAPL) will report on Thursday. Investors will be keen to hear commentary on AI spending and forward guidance, as these are expected to be significant drivers of market sentiment. Other notable companies reporting this week include UnitedHealth Group (UNH), SoFi (SOFI), Robinhood Markets (HOOD), PayPal (PYPL), MicroStrategy (MSTR), and Boeing (BA). Nvidia (NVDA), another key "Magnificent Seven" member, is anticipated to report later next month.
Major Stock News and Developments
Individual stock movements are also contributing to the day's narrative. Tesla (TSLA) saw a significant gain of nearly 4% in early trading following the announcement of a substantial $16 billion deal to procure its next-generation AI chips from Korea's Samsung. This news comes despite Tesla missing expectations on its second-quarter top and bottom lines, with automotive revenue down 16% year-over-year, partly due to increased competition from Chinese EV manufacturers.
Alphabet (GOOGL), the parent company of Google, emerged as a bright spot in recent earnings reports, exceeding both revenue and earnings expectations. This strong performance was primarily driven by robust revenue from YouTube advertising and Google Cloud. The company also raised its 2025 capital expenditure estimates for the second time this year, citing strong and growing demand for its Cloud products and services, with further increases expected in 2026.
In other corporate news, Nike (NKE) shares climbed 2.5% after receiving an upgrade from JPMorgan. The footwear giant's plan to improve inventory alignment with sales growth, accelerate wholesale overbooks, and introduce new performance products, particularly with the upcoming soccer World Cup in the U.S. next year, appears to be well-received by analysts.
The overall market momentum suggests that investors are balancing optimism stemming from reduced trade tensions and strong corporate performance against the anticipation of crucial economic data and central bank decisions. The coming days will provide further clarity on the market's direction as these significant events unfold.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.