Trade Optimism Propels Stock Markets to New Heights
U.S. stock markets reached fresh all-time highs on July 28, 2025. The S&P 500 closed at 6,389.77 and the Nasdaq Composite hit 21,178.58. This surge in the market was a positive response from investors to the U.S.-EU trade deal announcement. The broad market gains were recorded despite the initial lukewarm enthusiasm for the European agreement.
The technology-heavy Nasdaq also achieved a record close. This was largely boosted by gains in major tech stocks ahead of this week’s crucial earnings reports. Companies such as Tesla, Alphabet, and Amazon are expected to release their reports. Defense stocks, particularly Lockheed Martin and RTX, benefited from the EU’s commitment to purchase “hundreds of billions of dollars worth of military equipment,” both gaining over 1%.
This week marks the busiest period of earnings season. 174 companies are scheduled to report on Tuesday alone, including healthcare giant UnitedHealth Group. The positive market sentiment reflects growing optimism that additional trade deals may be reached before the August 1 tariff deadline.
“Stocks hardly need much of an excuse to rally right now, and agreement of the ‘biggest ever deal’ removes a key risk that the market had been concerned about,” analysts noted. This statement emphasizes the shift away from trade uncertainty toward constructive negotiations.
Source: CNBC