S&P 500 futures gapped 0.5% higher on the open Sunday evening, after US President Donald Trump and European Commission President Ursula von der Leyen said the two sides had reached an agreement to avoid a spike in tariffs which would have come into effect at the end of this week.<\/p>\n
The SPDR S&P 500 ETF<\/a> has since pared its gains, up 0.2% as of 8:00 a.m. ET.<\/p>\n Imports from the EU will face tariffs of 15%, in line with previous reports about the terms<\/a> of the deal, largely mirroring the US\u2019 recent pact with Japan.<\/p>\n \u201cAs with Japan, this willingness to reduce already implemented auto tariffs appears to have been the most important shift in Trump\u2019s negotiating position to secure a deal also with the EU,\u201d writes Jacob Funk Kirkegaard of 22V Research.<\/p>\n Separately, the South China Morning Post is reporting<\/a> that the US and China will extend their mutual 90-day watered-down tariffs<\/a> for another three months during trade talks in Sweden this week, citing unnamed sources on both sides.<\/p>\n In an interview<\/a> on Fox Business News last week, US Treasury Secretary Scott Bessent said \u201cwhat is likely an extension\u201d to the previous agreement, which is poised to expire on August 12, would be reached during these meetings.<\/p>\n \u201cThis development, if confirmed, would further reduce the urgency surrounding this week\u2019s trade calendar,\u201d writes Deutsche Bank macro strategist Jim Reid.<\/p>\n Ahead of this week\u2019s talks, the US had recently softened its position on one of the most contentious issues with regards to China \u2014 technological development, and in particular, AI \u2014 by allowing major chip companies like Nvidia and AMD to resume sending certain processors<\/a> to the world\u2019s second-largest economy.<\/p>\n","protected":false},"excerpt":{"rendered":"S&P 500 futures gapped 0.5% higher on the open Sunday evening, after US President Donald Trump and European…\n","protected":false},"author":2,"featured_media":42646,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[28,112],"class_list":{"0":"post-42645","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-markets"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/42645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=42645"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/42645\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/42646"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=42645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=42645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=42645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}