The U.S. markets rallied Monday as President Donald Trump unveiled a new trade agreement with the European Union, replacing previous tariff threats with a more measured 15% baseline rate on EU goods. The Dow Jones Industrial Average inched toward record territory, while the S&P 500 and Nasdaq continued their upward momentum.
Meeting with European Commission President Ursula von der Leyen in Scotland, President Trump struck what analysts are calling a stabilizing deal that reduces uncertainty and restores confidence in global markets.
Stocks opened higher, with the Dow up 38 points and investors optimistic that the trade deal avoids the worst-case economic fallout.
FACT SHEET: The United States and European Union Reach Massive Trade Deal pic.twitter.com/Mr2j799tkW
— Rapid Response 47 (@RapidResponse47) July 28, 2025
The dollar surged to its strongest levels since May, signaling renewed faith in U.S. economic leadership. Trump’s agreement is also seen as strengthening America's leverage ahead of talks with China and Russia.
With critical Fed, earnings, and jobs data looming, Trump’s diplomacy may give Wall Street room to breathe — at least for now.
