The S&P 500 broke above 6,400 after the U.S. and EU agreed to lower tariffs to 15%.

The S&P 500 pushed past the 6,400 line late Sunday night after U.S. President Donald Trump confirmed Sunday evening that the United States had finalized a tariff deal with the European Union, cutting levies down to 15% from the previously threatened 30%.

That announcement sent futures higher across the board and kicked off a rally that pulled Bitcoin back up to $120,000 for the first time in nearly two weeks.

Contracts tied to the Dow Jones Industrial Average jumped by 180 points (0.4%). S&P 500 futures climbed 0.3%, while Nasdaq 100 futures gained 0.4%. The sudden spike followed the White House’s confirmation of a successful trade agreement with the EU.

Trump had been threatening a heavy 30% tariff on EU imports before this adjustment. That walk-back was enough to send risk appetite back through the roof. Bitcoin, which had been swinging between $114,000 and $119,000, cleared $120,000 and was just $3,080 shy of its all-time high.

Traders watch earnings, Fed, and Trump’s August 1 deadline

The week is already loaded with pressure points. Wall Street will see earnings from top tech companies, a closely watched Federal Reserve meeting, inflation numbers, and Trump’s own August 1 tariff deadline.

Even before Trump’s Sunday announcement, U.S. equities had ended the previous week strong. On Friday, the Dow added 208.01 points, ending at 44,901.92.

The S&P 500 closed at 6,388.64, its 14th record finish of the year and fifth straight day of new highs. The Nasdaq Composite ended Friday at 21,108.32, also setting a fresh record, its 15th this year.

Wall Street’s optimism last week had already been helped by solid earnings and other trade negotiations with countries like Japan and Indonesia. But with new tariffs off the table for now, markets had extra fuel going into Monday.

The rally also lifted commodities. Gold traded near $3,335 an ounce after losing 0.4% last week. The yellow metal has still risen more than 25% this year, as investors continue to seek safety amid geopolitical uncertainty, including ongoing conflict in Ukraine and instability in the Middle East.

After briefly crossing $3,500 an ounce back in April, the latest data from the Commodity Futures Trading Commission showed that fund managers had raised bullish positions on gold to the highest point in 16 weeks.

Europe mostly flat as Asia-Pacific reacts to U.S. momentum

The reaction in Europe was mixed, as the FTSE MIB in Italy rose by 126.58 points to close at 40,726.26, up 0.31%. OMXS30 in Sweden moved 0.23% higher to 2,606.32. Denmark’s OMXC 25 climbed 0.26%, while Finland’s HEX inched up 0.04%.

Other markets in the region were flat. Germany’s DAX remained at 24,217.5. France’s CAC 40, the STOXX600, AEX, BEL 20, SMI, and PSI20 all showed no movement. The UK’s FTSE fell 18.06 points, or 0.2%, closing at 9,120.31. Spain’s IBEX 35 dropped by 19.2 points, or 0.13%, ending the session at 14,237.3.

In currency markets, the euro-dollar pair moved up slightly to 1.175, while the British pound stayed at 1.344 with almost no change. The Japanese yen traded at 147.85 against the dollar after a 0.13% increase. The U.S. dollar index stood at 97.62, up just 0.01%.

The Asia-Pacific session opened with mixed sentiment. At 10 a.m. in Hong Kong, the Hang Seng Index was up 0.49%, extending momentum from the U.S. session. But elsewhere, traders were waiting. Mainland China’s CSI 300 was flat ahead of U.S.-China trade talks scheduled to begin later Monday in Stockholm.

Japan’s Nikkei 225 dropped 0.85%, and the broader Topix slid 0.44%. In South Korea, the Kospi edged up 0.15%, while the Kosdaq stayed flat. In Australia, the S&P/ASX 200 gained 0.2%.