Stocks climbed on Thursday, May 8 as investors reacted to President Donald Trump’s announcement that the United States had reached a major trade deal with the United Kingdom.
As the announcement bolstered investor sentiment, the major U.S. indices jumped, with futures higher after Asian and European markets gained.
The S&P 500 opened 0.6% up, while the Dow Jones Industrial Average gained by more than 200 points. Nasdaq climbed 0.8%, opening higher as stocks looked to extend the previous session’s upside. Bitcoin (BTC) also rose above $99k as cryptocurrencies traded higher alongside other risk assets.
U.S. stocks had edged higher on Wednesday after Trump posted on Truth Social that his administration was set to announce a deal with a key trading partner. He later shared details of the trade agreement in another Truth Social post on Thursday, revealing the UK as the partner.
“The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come,” Trump posted. “Because of our long time history and allegiance together, it is a great honor to have the United Kingdom as our FIRST announcement. Many other deals, which are in serious stages of negotiation, to follow!”
Read more: Bitcoin approaches $100K as Trump teases major trade deal with “big” country
Gains across the stock market, albeit modest, come amid investor optimism that the tariff uncertainty that has driven a negative outlook is flipping towards clarity.
As well as the UK, Trump’s administration is expected to hold a high-level meeting between trade officials of the U.S. and China, news of which buoyed markets earlier this week.
Also on investor minds is the path of the Federal Reserve’s interest rates, with the central bank deciding to hold steady following its two-day meeting that ended on May 7.
Fed chair Jerome Powell signaled a “wait and see” move, something Trump has heavily criticized Powell for in recent remarks. He repeated the description of Powell being “too late” and said the Fed chair is a “fool who doesn’t have a clue.”
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