After the implementation of the US-Europe trade protocol, US stocks showed mixed results, with the market focusing on the potential delay of the US-China negotiations! Tech stocks led the rise, and the Nasdaq reached a new high.

After the US and Europe reached a favorable trade protocol, market optimism briefly boosted US stocks, but the performance of major indices was mixed. The Dow fell slightly by 0.10%, the S&P 500 hovered near historical highs, and tech stocks helped the Nasdaq to rise by 0.29%. As the August 1 deadline for US-China trade negotiations approaches, the market is concerned that failing to reach a protocol will trigger punitive tariffs. However, signs indicate that both sides may extend the negotiations by 90 days, with the focus shifting to the opening of the Chinese market, and investors are closely following changes in trade policy.

( market reaction ) US stocks have mixed performance, with tech stocks leading the Nasdaq After the favorable trade protocol was reached between the US and Europe on Sunday, the market welcomed a wave of optimism, but the major US stock indices showed mixed performance on Monday (July 28). The Dow Jones Industrial Average dipped slightly by 0.10%, while the S&P 500 fluctuated near its historic high, closing up 0.03%. The Nasdaq Composite Index, dominated by technology stocks, led with a rise of 0.29%, continuing its relatively strong performance.

( protocol details ) The US and EU tariffs are not equal, putting pressure on the EU's automotive and pharmaceutical industries This protocol sets a 15% baseline tariff on EU goods imported into the United States, while most U.S. goods entering the EU market enjoy zero tariffs. Despite France criticizing the protocol as a "yield," it still helps the EU avoid a costly trade war with the United States. However, the U.S. tariffs are expected to cost EU automakers and pharmaceutical companies billions of dollars each year, eroding their export profits.

( US-China Focus ) The deadline of August 1 is approaching, and the 90-day extension negotiation has become the focus The current market focus is shifting towards negotiations between the United States and its largest trading partner, China. With the August 1 deadline approaching, the protocol still seems out of reach. The market is concerned that if an agreement is not reached by then, both sides may restart mutual punitive tariffs, and the actual tax rates could reach embargo levels.

But there is still hope that China and the United States will agree to extend the negotiations for another 90 days. The Washington Post reports that the likelihood of an extension is high. Both Beijing and Washington have lowered their rhetoric, and there are signs that the China-US protocol may be more balanced. According to existing information, the negotiations will focus on China's market access issues. On Monday, US President Trump publicly stated that he "hopes to see China open its market."

Conclusion: The US-EU protocol has temporarily eased trade tensions, but the market quickly shifts its focus to the more challenging US-China negotiations. The resilience of tech stocks highlights the market's preference for growth assets, while the weakness of the Dow Jones reflects the sensitivity of traditional industries to tariff risks. If the US and China successfully extend the negotiation period and shift towards market opening issues, it could inject new momentum into the global trade pattern and risk assets; conversely, the re-emergence of punitive tariffs would exacerbate market volatility, and investors need to prepare for potential trade war risks.