US stocks surged following President Donald Trump’s announcement of a new trade agreement with the United Kingdom during a White House news conference
The Dow Jones Industrial Average climbed 650 points, a 1.59% gain, while the S&P 500 advanced 1.56%. The tech-heavy Nasdaq Composite outperformed with a 2% rise.
The rally gained momentum as Trump expressed optimism about upcoming trade negotiations with China. Stocks initially fluctuated after the US-UK deal was announced but soared as Trump predicted a “good weekend” for talks with China.
In a bold statement, Trump encouraged investors to capitalize on the market’s upward trajectory. “You better go out and buy stock now,” he declared. “This country will be like a rocket ship that goes straight up.”
Wall Street is keenly focused on reducing tariff burdens, and investors are closely analyzing the specifics of emerging trade agreements.
Joe Brusuelas, chief economist at RSM, expressed skepticism on X, stating, “This does not provide the clarity necessary to lift the fog of uncertainty created by a trade war of choice.”
Jay Hatfield, CEO of Infrastructure Capital Advisors, described the US-UK trade deal as “fairly thin” but acknowledged it as a positive step.
The US dollar index, which tracks the dollar’s value against six major currencies, rose 0.9%. The British pound briefly strengthened against the dollar before weakening, while London’s FTSE 100 index closed down 0.3%.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, explained the FTSE’s decline to CNN, noting that the deal appears more advantageous for the US. “Ten percent tariffs remain in place for many British exporters, while American companies selling into the UK will benefit from new duty reductions,” she said.
In other markets, bitcoin surpassed $100,000 for the first time in three months, while gold prices fell 1.6%, reflecting reduced demand for the safe-haven asset amid easing uncertainty.
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