CNBC: The market is no longer following the US-Europe trade protocol and urgently needs another new catalyst.

On July 29, according to CNBC, the European and American stock markets reacted mildly to the trade protocol reached over the weekend. The S&P 500 index slightly rose, but it was almost negligible; while the Europe Stoxx 600 index fell. Both indices had once risen during their respective trading sessions but pulled back near the close. For the European continent, people may be starting to realize that this protocol may not actually be beneficial for them. German Chancellor Friedrich Merz and French Minister for European Affairs Benjamin Haddad both expressed hope for more open trade. Meanwhile, U.S. President Trump announced on Monday that he is "very likely" to impose a uniform tariff of 15% to 20% on countries that do not sign trade protocols with the U.S. This means that most tariffs may stabilize at this level in the future, helping to alleviate the uncertainty in the market that had been present earlier. Additionally, economists are also lowering their expectations for the impact of tariffs on the U.S. economy — which means that even if new protocols are introduced in the future, they may not necessarily trigger a strong rise on Wall Street. As a result, the tariff issue has been temporarily shelved. Investors' attention is now turning to the earnings reports from the "Seven Giants": Meta and Microsoft will announce their results on Wednesday. If they perform well, it may bring the optimism that was lacking on Monday to the market.