05:02 PM EDT, 07/28/2025 (MT Newswires) -- US equities closed mixed Monday, with the S&P 500 little changed despite Washington's trade deal with the European Union as markets awaited the Federal Reserve's monetary policy decision due later in the week.

The Nasdaq Composite rose 0.3% to 21,178.6, notching its fourth consecutive record finish. The S&P 500 ended just above the flatline at 6,389.8, eking out a fresh closing high after last week's record run. The Dow Jones Industrial Average fell 0.1% to 44,837.6.

Most sectors ended in the red, led by real estate, while energy saw the biggest gain.

The Fed's monetary policy committee will begin its two-day meeting Tuesday, with a decision on interest rates due Wednesday. Markets are widely expecting the Federal Open Market Committee to hold the benchmark lending rate steady, while pricing in a 62% probability for a 25-basis-point reduction in September, according to the CME FedWatch tool.

There may be more Fed policymakers willing to cut rates as a trade deal announced Sunday between the US and the EU helps ease uncertainty levels, Macquarie said in a note.

Under the deal, the bloc agreed on a 15% tariff on its exports, including automobiles, semiconductors and pharmaceuticals. The deal followed last week's announcement by President Donald Trump of trade agreements with Japan, the Philippines and Indonesia.

"The voice of dissenters vis-a-vis the FOMC's 'on hold' decision" this week will be amplified by the recent trade deals, Macquarie strategists Thierry Wizman and Gareth Berry said.

The US-EU trade deal may leave Fed Chair Jerome Powell "with one less excuse to not reduce the Fed funds rate target by September, although December remains our economists' baseline point in time," Wizman and Berry said.

Oppenheimer on Monday raised its year-end target for the S&P 500 to 7,100 from 5,950, saying recent trade deals have helped reduce policy uncertainty that fueled economic concerns earlier this year.

"Although much uncertainty and worry prevailed for some time both with trade policy and geopolitical events, and given the multitude of potential outcomes, we'd note that cooler heads prevailed -- leading to positive outcomes at least for now," Oppenheimer Asset Management Chief Investment Strategist John Stoltzfus said in a note.

Trump said Monday that he will likely impose a tariff rate between 15% and 20% on countries that haven't struck trade deals, CNBC reported. The US administration has set an Aug. 1 deadline for countries to negotiate deals with Washington or potentially face higher tariffs.

US Treasury yields were mixed, with the 10-year rate rising 2.7 basis points to 4.42%, while the two-year rate dropped 0.8 basis point to 3.93%.

In company news, Nike ( NKE ) shares were advanced 3.9%, the top gainer on the Dow and among the best performers on the S&P 500. JPMorgan upgraded its rating on the athletic footwear and apparel maker's stock to overweight from neutral and raised the price target to $93 from $64.

Revvity ( RVTY ) shares sank 8.3%, the second-worst S&P 500 performer, after the company lowered its full-year earnings outlook.

Tesla's (TSLA) semiconductor supply contract with Samsung likely doesn't bode well for Taiwan Semiconductor Manufacturing ( TSM ) and US chipmaker Intel ( INTC ) , Wedbush Securities said in a note. South Korea's Samsung said Monday that it will supply chips to an unnamed counterparty in a deal worth 22.765 trillion won ($16.37 billion). Tesla Chief Executive Elon Musk confirmed the deal in a reply to a post on his X social media platform.

Tesla shares rose 3%, while Taiwan Semiconductor's US-listed shares fell 1.2%. Intel ( INTC ) edged down 0.1%.

In economic news, Texas manufacturing activity unexpectedly swung into growth territory in July after five months of contraction, while the outlook improved, data from the Federal Reserve Bank of Dallas showed.

West Texas Intermediate crude oil was up 2.9% at $67.06 a barrel in Monday late-afternoon trade.

Gold was down 0.5% at $3,317.5 per troy ounce, while silver fell 0.1% to $38.34 per ounce.