The U.S. and EU reached what I would describe as a “perfect trade deal” after weeks of uncertainty, one that not only prevents escalation but also lays the groundwork for genuine economic momentum. S&P 500 futures responded right away, rising.
The Deal Breakdown
The U.S. capped tariffs at just 15% (vs. the feared 30–50%), while the EU committed to over $600B in U.S. energy and defense purchases. Both sides walk away with wins
The deal boosts U.S. exports, avoids inflationary shock from tariffs; the U.S. gets leverage and growth.
What to watch
Can the big tech and industrial companies follow through and carry the momentum?
Will the Fed respond watch there tone?
Will China follow the EU’s lead?
My take
Although its very early, I see upside ahead! Unless the Fed decides to cause national shock.
What do you think?