Stocks Edge Higher after Trump Announces Trade Deal with UK/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ US stocks slightly gained as President Donald Trump announced a trade deal with the United Kingdom during a news conference at the White House. The Dow was up 235 points, or 0.57%. The broader S&P 500 gained 0.54%. The tech-heavy Nasdaq Composite rose 0.7%.
Wall Street Trade Optimism Quick Looks
- Market Movement: S&P 500 up 0.6%, Dow up 253 points.
- Trade Buzz: Trump promises “full and comprehensive” UK deal.
- Next Up: High-stakes U.S.-China talks expected this weekend.
- Investor Sentiment: Hopes rise that tariff rollbacks may follow.
- Corporate Earnings: Tapestry beats forecasts, Molson Coors and Krispy Kreme struggle.
- Economic Data: Jobless claims fall, but worker productivity slips.
- Tariff Fallout: Companies pull or revise forecasts amid uncertainty.
- Global Reaction: FTSE 100 dips after UK rate cut; Asia, Europe edge higher.
- Treasury Yields: 10-year note rises to 4.29% on mixed economic data.
- Big Picture: Optimism tempered by inflation risks and trade disruption fears.
Deep Look: Wall Street Rally Fueled by Trade Deal Hopes, But Tariff Tensions Persist
Wall Street opened strong Thursday as optimism spread over a potential U.S.-U.K. trade agreement that could signal the start of a broader push to ease global economic tensions. President Donald Trump announced plans to unveil the agreement—billed as “full and comprehensive”—later in the day, sparking investor enthusiasm and lifting major stock indexes.
US stocks slightly gained as President Donald Trump announced a trade deal with the United Kingdom during a news conference at the White House. The Dow was up 235 points, or 0.57%. The broader S&P 500 gained 0.54%. The tech-heavy Nasdaq Composite rose 0.7%.
Stocks had come off their highest levels of the day leading up to the announcement and wavered as Trump spoke, before pushing higher. Wall Street is eager for tariff rates to come down, and investors will scrutinize the details of trade deals.
Jay Hatfield, chief executive at Infrastructure Capital Advisors, said the US-UK trade deal looked “fairly thin” but was nonetheless a positive development.
The US dollar index, which measures the dollar’s strength against six major foreign currencies, gained 0.5%. The British pound also gained against the dollar.
Investors are cautiously optimistic that this deal may pave the way for further agreements, particularly if they lead to reduced tariffs. Trump’s administration had raised global import taxes sharply in recent months, raising fears of a recession. Thursday’s announcement hinted at a potential policy shift that could stabilize economic conditions.
“Many other deals, which are in serious stages of negotiation, to follow!” Trump wrote on his Truth Social account.
Yet analysts remain wary. Trump’s tariffs — including a sweeping 10% levy on all imports enacted during “Liberation Day” — remain in place, and many are skeptical about whether a deal with Britain alone can offset broader global impacts.
In a parallel development, China again called for the U.S. to drop its 145% tariffs ahead of weekend negotiations in Switzerland. Trump responded Wednesday by saying those tariffs would not be lifted ahead of talks, adding another layer of uncertainty.
Amid the trade optimism, corporate earnings continued to drive individual stock moves:
- Tapestry, parent of Coach and Kate Spade, jumped 5% on better-than-expected profit and revenue, citing strong engagement from younger North American consumers.
- Molson Coors fell 7.4% after missing analyst expectations and warning that geopolitical volatility and inflation were dampening global beer consumption.
- Krispy Kreme dropped 24.3%, citing “macroeconomic softness” and a pause on McDonald’s partnership expansion as it withdrew its full-year forecast.
Federal Reserve Chair Jerome Powell noted Wednesday that while the underlying U.S. economy remains steady, both inflation and unemployment risks are rising. The Fed left interest rates unchanged at 4.3%, marking its third consecutive pause after rate cuts in late 2024.
Meanwhile, labor data offered mixed signals. Weekly unemployment claims dropped by 13,000 to 228,000, but worker productivity shrank more than expected in the first quarter—raising concerns that inflationary pressures could persist, especially if tariffs continue to inflate costs on imported goods.
These trends pushed the 10-year Treasury yield to 4.29%, up from 4.26% on Wednesday, as bond markets responded to the mixed economic outlook.
Global markets also showed signs of volatility. The FTSE 100 in London dipped 0.1% after the Bank of England trimmed its benchmark rate by 0.25%, while most Asian and European indexes closed slightly higher.
Despite recent volatility and trade-related jitters, the S&P 500 is on track for its 11th gain in 13 sessions, powered by resilient consumer demand, cautious optimism over trade progress, and earnings that—while mixed—continue to suggest solid business fundamentals.
But with Trump’s global tariff structure still in place and many businesses scaling back forecasts for 2025, investors are far from declaring victory over recession fears.
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