NEW YORK, July 26 — Investors are closely monitoring developments as the United States and European Union edge toward a possible trade agreement, with just days left before the tariffs deadline next Friday.

Hopes for a breakthrough are growing, as European Commission President Ursula von der Leyen prepares to meet with U.S. President Donald Trump in Scotland on Sunday. EU officials and diplomats have signaled optimism that a framework deal could be achieved over the weekend.

However, President Trump struck a cautious tone on Friday, stating there was only a “50-50 chance — or perhaps less” — of a successful agreement being reached. Markets are reacting with cautious optimism, as clarity on the trade relationship could ease volatility and boost investor confidence in transatlantic economic cooperation.