The U.S. stock market is experiencing a dynamic Monday, July 28, 2025, with major indexes reaching new highs in afternoon trading, buoyed by a significant trade agreement and investor anticipation of a packed week ahead. The positive sentiment comes as market participants digest a new U.S.-European Union trade deal and prepare for a pivotal Federal Reserve meeting, a slew of economic data, and the busiest stretch of the second-quarter earnings season.
Afternoon Trading: Indexes Scale New Peaks
As afternoon trading progresses, the major U.S. stock indexes are maintaining their upward trajectory. The S&P 500, which closed at a record high every day last week, continued its ascent, recently trading up 0.1% after hitting a new all-time high earlier in the session. The tech-heavy Nasdaq Composite also reached fresh records, climbing 0.3% in early-afternoon trading. The Dow Jones Industrial Average, while showing more modest gains, rose fractionally and is nearing its first new high since December.
This market strength is largely attributed to easing concerns over tariffs following a new trade agreement between the United States and the European Union, announced on Sunday. Under the terms of the deal, most imports from the 27-country bloc will 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 and an unspecified amount of military equipment from the U.S., a development that could provide a lift to energy and defense sectors.
Sector performance in the afternoon reflects this mixed sentiment. Technology stocks are broadly climbing, with the Technology Select Sector SPDR Fund up 0.5% and the SPDR S&P Semiconductor ETF rising 1.5%. The Philadelphia Semiconductor Index also added 1.4%. Conversely, consumer stocks are showing mixed results, with the Consumer Staples Select Sector SPDR Fund shedding 0.8% while the Consumer Discretionary Select Sector SPDR Fund increased by 0.8%.
Upcoming Market Events: A Week of High Stakes
This week promises to be exceptionally busy for financial markets, with several key events poised to influence investor sentiment and market direction.
The spotlight will firmly be on the Federal Reserve's (FOMC) meeting, which kicks off on Tuesday, July 29, and concludes on Wednesday, July 30, with the central bank's latest policy decision. While the Federal Open Market Committee is widely expected to hold interest rates steady at their current range of 4.25%-4.50%, attention will be keenly focused on Fed Chair Jerome Powell's press conference. Despite persistent calls from President Trump for rate cuts, analysts anticipate Powell will emphasize patience, with markets currently pricing in a 63% probability of a 25-basis-point rate cut by the September FOMC meeting.
On the economic data front, investors are awaiting several crucial reports. The advance estimate for second-quarter GDP, a key inflation reading in the form of the Personal Consumption Expenditures (PCE) report, and the highly anticipated July jobs report are all due this week. Current consensus forecasts suggest a rebound in Q2 U.S. GDP growth to 2.5%, a 0.3% rise in the June PCE price index, and a slowdown in hiring with nonfarm payrolls expected to increase by approximately 102,000. These data points will be critical in shaping the outlook for future monetary policy.
Furthermore, this marks the busiest week of the second-quarter earnings season. Four of the "Magnificent Seven" technology giants are scheduled to report their quarterly results: Microsoft (MSFT) and Meta Platforms (META) on Wednesday after the bell, followed by Apple (AAPL) and Amazon (AMZN) a day later. Other major companies slated to release earnings this week include UnitedHealth Group (UNH), SoFi (SOFI), Robinhood Markets (HOOD), PayPal (PYPL), MicroStrategy (MSTR), Boeing (BA), Procter & Gamble (PG), Starbucks (SBUX), Visa (V), Ford (F), Qualcomm (QCOM), and ExxonMobil (XOM).
Beyond these, ongoing trade negotiations, particularly with China in Stockholm, Sweden, remain a focal point as the August 1st deadline for sweeping tariffs approaches.
Major Stock News and Corporate Developments
Several individual stocks are making headlines today. Tesla (TSLA) saw its shares gain 4% in early-afternoon trading after the electric vehicle maker announced a significant deal worth approximately $16 billion to procure its next-generation AI chips from South Korea's Samsung. This development underscores the growing importance of AI infrastructure across various industries.
Other prominent technology stocks also saw gains, with Nvidia (NVDA), Apple (AAPL), Amazon (AMZN), and Meta Platforms (META) all moving higher. However, Alphabet (GOOGL) dropped 1% and Microsoft (MSFT) ticked slightly lower, despite strong performance last week for Alphabet following its earnings.
Among other noteworthy movers, server manufacturer Super Micro Computer (SMCI) jumped more than 7%, pacing S&P 500 advancers, while chip giant Advanced Micro Devices (AMD) climbed 3.5%. Nike (NKE) shares tacked on nearly 4% after receiving an upgrade from analysts at JPMorgan, citing momentum for global orders. In the e-commerce and tech space, Alibaba (BABA) unveiled new AI-powered smart glasses, positioning itself as a competitor to similar offerings from Meta Platforms.
Conversely, the cable sector experienced a downturn, with Charter Communications (CHTR) tumbling 18% after its earnings missed forecasts and the company reported a loss of broadband and video subscribers. This weakness impacted other cable providers like Comcast (CMCSA) and Altice USA (ATUS). Meanwhile, Palantir (PLTR) continued its strong performance, gaining over 2% and reaching an all-time high.
In the cryptocurrency market, Bitcoin remains robust, recently trading around $118,100, not far from its record high of $123,000, amid growing optimism about cryptocurrency support from the White House and Congress.
As the afternoon progresses, investors remain vigilant, balancing the positive news from trade agreements with the anticipation of critical economic data and corporate earnings that will define the market's direction for the remainder of this high-stakes week.
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.