S&P 500 Flat as Traders Shrug Off EU-U.S. Trade Deal; Focus Shifts to Tech Earnings and Fed

The S&P 500 closed virtually unchanged Monday, with traders showing muted reaction to the newly announced EU-U.S. trade agreement. The index briefly touched a record high before settling just 0.2% above flat, while the Nasdaq Composite edged up 0.33% to another all-time peak.

Despite President Trump's announcement of reduced tariffs to 15% for bilateral partners—a move avoiding previously threatened 30% levies—market participants remained focused on looming catalysts. Over 150 S&P 500 companies report earnings this week, including tech giants Meta, Microsoft, Amazon and Apple. AI-related capital expenditure commentary stands as a key focus area.

The Federal Reserve's policy decision and upcoming jobs data further diverted attention from trade developments. Trump's warning of 15-20% tariffs for nations refusing renegotiation failed to stir significant volatility, underscoring the market's singular focus on monetary policy and corporate fundamentals.