Last Updated on July 31, 2025
The stock market today: South Korea trade deal made headlines early July 31, 2025, as Dow futures rose by 0.3%, S&P 500 futures gained 1%, and Nasdaq futures jumped 1.4% in pre-market trading. This rally followed the announcement of a U.S.–South Korea trade agreement and strong quarterly earnings from Big Tech giants Microsoft and Meta. The combination of trade optimism and robust corporate earnings boosted global risk sentiment, reinforcing U.S. equity momentum and driving dollar strength—reshaping investor strategy on both sides of the Atlantic.
How the South Korea Trade Deal Propelled Futures
The newly announced deal imposes a 15% U.S. tariff on South Korean imports, tied to $350 billion in Korean investments and $100 billion in U.S. energy purchases—a move viewed as a net win for U.S. industrial exports. Investors interpreted this as a positive for U.S. equities, particularly in industrial, energy, and defense sectors, sending Dow, S&P, and Nasdaq futures higher ahead of the opening bell. The trade optimism helped offset concerns around tariffs elsewhere, pulling futures upward and setting a tone of risk-on for the session.
Big Tech Earnings Lift Sentiment
Strong earnings from Microsoft and Meta exceeded expectations, with bullish forward guidance in cloud, advertising, and AI driving confidence. These companies buoyed technology-forward indices and risk appetite broadly. For example, Microsoft shares rose (+8.67%) sharply after market close, and hopeful signals from Meta (+11.95%) helped lift futures by 0.2–0.3% across indexes. This earnings-led rally underscores the continued influence of a few mega-cap names in shaping broader market sentiment.
Portfolio Implications for U.S. and European Investors
For U.S. investors, the rally validates overweight positions in tech, industrials, and energy sectors. Enhanced earnings and trade clarity may spark rotation into megacap tech and cyclical sectors. Meanwhile, European portfolio managers face mixed signals: optimism that U.S. equities will keep rising, but potentially stronger dollar returns could erode euro-based gains. European stocks were already showing slight declines, with Stoxx 600 down ~0.3% amid tariff fallout and cautious sentiment. U.S. equity exposure may be beneficial, but FX hedging or cautious position scaling is advisable.
Impact on EUR/USD Currency Rate
Trade optimism and Big Tech strength have reinforced dollar strength—the U.S. dollar neared a two‑month high as futures rose. This puts downward pressure on the EUR/USD exchange rate, which slipped roughly 1% following the trade deal and Fed policy uncertainty. For European investors with U.S. allocations, this translates into lower euro‑converted returns unless hedged. As markets brace for upcoming U.S. GDP and FOMC decisions, currency volatility is likely to persist.
Today’s stock market today South Korea trade deal coverage shows how macro trade policy and company-specific earnings can lift futures and investor sentiment. While U.S. and technology-heavy portfolios are poised to gain, European investors must weigh dollar strength and potential euro-headwinds. In this environment, diversified exposure and currency-aware strategies are key. Want tailored portfolio insights or FX hedging strategies? Subscribe or reach out to connect.