US-EU trade deal, Big Tech earnings, Fed meeting: 3 Things

00:00 Speaker A

Let’s get to the three things you need to know today. First up, US stock futures pushing higher this morning. That’s after the US and European Union reached a trade deal. The EU will accept a 15% tariff on most of its exports to the US, while reducing levies on some American products to zero. European Commission President Ursula von der Leyen hailed the agreement for the stability and predictability that it will offer businesses and consumers. US energy stocks moving higher on the back of the deal as Trump said that the EU agreed to purchase $750 billion in American energy products and invest $600 billion in the US on top of existing expenditures. US defense stocks also on the move as the EU agreed to purchase vast amounts of military equipment from the US, according to Trump. Plus, investors are gearing up for a crucial week of earnings reports. Big tech heavyweights Apple, Amazon, Meta, Microsoft are all set to report. Those four companies worth a combined $11 trillion will give investors a key glimpse into the health of businesses ranging from electronic devices and software to cloud computing and e-commerce. A strong showing is critical to sustaining the S&P 500’s rally with Meta and Microsoft among the top three point gainers in the S&P this year. And all eyes will be on the Federal Reserve as well this week as the central bank meets in Washington ahead of its policy announcement on Wednesday. The Fed widely expected to keep rates on hold this week despite immense pressure from the Trump White House to cut interest rates. In addition to the Fed decision, investors will digest data including the July jobs report, GDP consumer spending, PMI, and ISM manufacturing.