Equities Hold at Record, Dollar Gained on Trade Hopes – US Market Wrap

Wall Street began on a pivotal week with the dollar rising the most since May as a tariff deal between Trump and the EU bolstered hopes for an extension of a China trade truce. Equities held at record highs. Bonds edged lower.

The start of a week that will set the tone for the rest of the year in markets saw the dollar index rise about 1%, extending its July gain. The euro dropped the most in over two months. The S&P 500 remained relatively unchanged after briefly hitting 6,400. Treasuries scarcely moved in response to conflicting US sales data. Oil prices surged when Trump announced that he would shorten Russia’s deadline for reaching a truce with Ukraine.

In the run-up to the August 1st US tariff deadline, traders will scrutinise a slew of critical statistics, including jobs, inflation, and economic activity. The main event comes on Wednesday, when the Fed is poised to keep interest rates unchanged. Then there’s a string of big-tech earnings, with four megacaps worth a total of $11.3 trillion presenting results.

US and Chinese officials have completed the first of two days of talks aimed at extending their tariff truce beyond a mid-August deadline and determining how to maintain trade links while protecting economic security. Canada’s PM Carney stated that his government is still engaged in trade talks with the Trump administration.

The Treasury increased its estimate of government borrowing for the current quarter to $1 trillion, owing primarily to distortions caused by the debt ceiling. On Wednesday, the department will outline its intentions for note and bond sales in the following months, which most dealers expect to remain unchanged.