Nasdaq Composite Live: Market Gains Momentum on US-EU Trade Deal

Stock futures are mixed, but the Nasdaq is expected to open higher.

Fueling upside, President Trump announced that the U.S. reached an agreement with the European Union to lower tariffs to 15%.

Magnificent 7 stocks, including Meta Platforms, Microsoft, Amazon, and Apple, are all set to post earnings this week. Investors will be listening for comments on strengthening artificial intelligence spending to gauge the justifiability of tech stock valuations.

Helping, “While expectations were low coming into this season, results so far show corporate America is faring better than expected. Of the more than 30% of the S&P 500 done reporting, more than 82% beat Wall Street’s forecasts,” added CNBC.

Later this week, the Federal Reserve will hold its two-day meeting.

The central bank is widely expected to leave interest rates as is. However, investors will be looking for an indication of a potential rate cut by September.

Defense Stocks are Rallying on the US-EU Trade Deal 

Defense stocks are also gaining momentum after the US-EU trade deal. As part of that deal, President Trump said the EU would be “purchasing hundreds of billions of dollars’ worth of military equipment,” as quoted by CNBC.

In addition, as announced shortly after the agreement, Europe will also purchase about $750 billion worth of energy.  “They are going to agree to invest into the United States $600 billion more than they’re investing already. So, they’re investing a large amount of money,” added President Trump, as quoted by The Mirror.

Analysts Just Reiterated an Overweight Rating on Amazon

Morgan Stanley just reiterated its overweight rating on Amazon.com, noting that it’s a beneficiary of the Big Beautiful bill passed by Congress. The firm believes AMZN could capture at least $15 billion a year in tax benefits.

Wells Fargo just initiated an overweight rating on Take Two Interactive (TTWO), noting that it’s bullish on the 2026 release of its latest Grand Theft Auto game. The firm anticipates that GTA 6 will sell 50 million units in fiscal year 2027.

Bank of America analysts just reiterated a buy rating on Apple ahead of its earnings this week.

Deutsche Bank also reiterated a buy rating on Tesla, noting that “patience” is needed with Tesla’s robotaxi, but it’s sticking with the stock.

And analysts at Stifel just reiterated a buy rating on Microsoft, and raised its price target on the tech giant to $550 from $500 ahead of earnings.

Analysts at Evercore ISI downgraded Cisco mainly on valuation concerns to an in-line rating. “We are downgrading Cisco to In Line as the stock is within 6% of our price target of $72. The stock has performed well recently with a +46% move over the last twelve months vs. +17% for the S&P,” as quoted by CNBC.

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