US stock indices closed with mixed results on Monday, reflecting cautious investor sentiment following a new US-EU trade agreement. The Dow Jones Industrial Average dipped 0.14%, while the Nasdaq Composite rose 0.33% on tech sector strength. The S&P 500 remained nearly flat, edging up just 0.02%.
Sector Performance Highlights Divergence
Eight of the S&P 500's 11 primary sectors declined, with real estate and materials dropping 1.75% and 1.44%, respectively. Energy and technology sectors bucked the trend, climbing 1.15% and 0.77% as markets digested the implications of Sunday's US-EU tariff reduction agreement, which lowered duties on most EU imports to 15%.
Tech Sector Drives Momentum
Tech stocks showed resilience, with Tesla surging 3% after securing a $16.5 billion deal with Samsung for advanced AI chips. Nvidia and Broadcom gained 1.5%, while Apple, Amazon, and Meta also advanced. Analysts note investor focus on this week's earnings reports from tech giants Meta and Microsoft (Wednesday) and Amazon and Apple (Thursday), particularly regarding AI investment trends.
Economic Calendar Looms Large
Markets await key data this week, including job openings figures and private payroll reports. The Federal Reserve's policy meeting conclusion on Wednesday will be closely watched for signals about potential September rate cuts, though no immediate changes are expected.
