Stocks Close Mixed to Start Fed Week: Stock Market Today
News of an EU-U.S. trade deal was met with muted reaction from market participants who are looking ahead to a jam-packed week.
Stocks were choppy to start the busy week as market participants considered a tentative trade deal between the U.S. and the European Union. The main indexes eventually finished mixed as attention turned to this week's Fed meeting and an upcoming onslaught of corporate earnings reports.
On Sunday, the two parties agreed to set a 15% tariff on most goods that the EU exports to the United States, including cars and pharmaceuticals. The deal also stipulates that the European Union buy $750 billion of U.S. energy and invest an additional $600 billion in the United States.
A zero-percent tariff on a number of goods, including aircraft and semiconductor equipment, was also part of the agreement, though negotiations for the current 50% tariff on steel and aluminum imports were not.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The 27-nation bloc is the United States' biggest trade partner, so the news is a big win for President Donald Trump ahead of this Friday's tariff deadline. It also follows last week's announcement of a trade deal with Japan that also imposed a 15% baseline tariff.
"We believe the trade deals settled on thus far can benefit American companies in the long run," says Megan Horneman, chief investment officer at Verdence Capital Advisors.
But in the near term, she says that tariffs "threaten margins, potentially inflation and elevated multiples."
Horneman adds that the stock market appears to be phasing out any tariff threat, and is instead focusing on a strong start to second-quarter earnings season.
As for today's market moves, the Nasdaq Composite closed up 0.3% at 21,178, while the S&P 500 finished 0.02% higher at 6,389.
The Dow Jones Industrial Average shed 0.1% at 44,837. Weighing on the Dow were insurance giant Travelers Companies (TRV) and paint maker Sherwin-Williams (SHW), which shed 2.4% and 1.2%, respectively.
Nike stock gets upgraded
Nike (NKE), meanwhile, emerged as the best Dow Jones stock on Monday, gaining 3.9% after J.P. Morgan Securities analyst Matthew Boss upgraded it to Overweight (the equivalent of Buy) from Neutral (the equivalent of Hold).
The analyst also raised his price target on the blue chip stock to $93 from $64, representing implied upside of 17% to current levels.
Boss is optimistic about a multi-year recovery path for Nike that includes improving inventory levels and retail demand, as well as the anticipated launch of new performance products.
It's been a rough few years for Nike, which has seen its top and bottom lines hit by a laundry list of woes, including rising inflation, tensions between the U.S. and China, and a lack of innovation.
But the stock appears to have reached an inflection point and is up more than 42% since early April.
The week is about to get rolling
Monday marked a relatively quiet start to a week that has the potential for fireworks. Most notable on the economic calendar is Wednesday's policy announcement from the Fed.
While no rate cut is expected at the July Fed meeting, Wall Street will be glued to Federal Reserve Chair Jerome Powell's press conference, looking for clues on the central bank's rate-cut plans or commentary on President Donald Trump's aggressive campaign for lower interest rates.
Other data this week include the first reading on Q2 gross domestic product (GDP), the June Personal Consumption Expenditures (PCE) Price Index and the July jobs report.
And the busiest week of second-quarter earnings so far features a number of high-profile results. Included in the lineup are Amazon.com (AMZN) and Apple (AAPL), with the blue chips both set to report after Thursday's close.
CFRA Research analyst Arun Sundaram thinks Amazon will beat on both the top and bottom lines for its second quarter amid strength in retail, advertising and Amazon Web Services (AWS).
"That said, we wouldn't be surprised by a cautious Q3 outlook, given ongoing tariff uncertainties and rising Project Kuiper expenses as satellite launches ramp in the second half of 2025," Sundaram adds.
And Morgan Stanley analyst Erik Woodring believes Apple will report solid fiscal third-quarter results thanks to solid product sales, "better-than-feared Services growth" and forex tailwinds.
Still, he's keeping a close eye on what's around the corner. While the "setup into June quarter earnings is more positive than negative," Woodring says, " any outperformance into earnings is likely to be short-lived until we get clarity" on near-term uncertainties, including tariffs and Apple's AI strategy.
Related content
- What CEOs Say About President Trump and Fed Chair Powell
- I Want to Retire Next Year. Should I Keep My Money In the Stock and Bond Markets?
- Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
A Lesson From the School of Rock About the MarketsIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I retired at 65 with $7.8 million and feel like I over-saved. My 40-something son is on the same path. Should I tell him to reconsider?We ask financial experts for advice.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.
-
Take It From a Tax Expert: The True Measure of Your Retirement Readiness Isn't the Size of Your Nest EggA sizable nest egg is a good start, but your plan should include two to five years of basic expenses in conservative, liquid accounts as a buffer against market volatility, inflation and taxes.
-
Dow Adds 472 Points After September CPI: Stock Market TodayIBM and Advanced Micro Devices created tailwinds for the main indexes after scoring a major quantum-computing win.
-
October Fed Meeting: Live Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.