U.S.-EU Trade Pact: Stocks Inch Up Amid Strategic Dynamics

Wall Street equities rose as investors reacted to a new U.S.-EU trade agreement, which imposes a 15% tariff on EU goods and sees the EU investing $600 billion in the U.S. While the deal provides some certainty, critics argue it favors Washington. Markets await further economic data and interest rate decisions.

Wall Street equities saw a modest rise as global investors cautiously welcomed a new trade agreement between the U.S. and the European Union. The deal, described by European Commission President Ursula von der Leyen as the best possible, introduces a 15% import tariff on most EU goods while facilitating significant U.S. investment.

The agreement, which aimed to prevent a standoff between the two trading giants, has spurred criticism from some European quarters, citing it as skewed in favor of the U.S. Despite this, market reactions remained muted compared to previous highs driven by strong quarterly earnings and optimism over AI and megacap stocks.

As investors look forward to a packed week with key economic releases, major corporate earnings, and pivotal central bank meetings, the market remains steady yet vigilant. Interest rates remain a focal point, as ongoing tensions over the U.S. Federal Reserve's decisions highlight the complex dynamics at play.

(With inputs from agencies.)