The broader market rose higher on Thursday after President Donald Trump announced a trade deal framework with the United Kingdom, the first major agreement since the White House issued a barrage of tariffs on key trading partners in early April. The Dow Jones Industrial Average climbed over 250 points, while the S&P 500 Index and Nasdaq Composite added about 0.6% and 1%, respectively.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Trump announced Thursday in a post on his social media platfrom Truth Social that the United States has reached a "full and comprehensive" agreement with the U.K. The nation, with runs a trade deficit with the U.S., is subject to the White House's baseline 10% tariff announced on April as well as the 25% duties on steel, aluminum and vehicles.
Speaking to Oval Office reporters Thursday morning, Trump said the deal will include "billions of dollars of increased market access for American exports, especially in agriculture," adding that the U.K. will halt non-tariff barriers that have "unfairly discriminated against American products. U.S. Commerce Secretary Howard Lutnick said on Thursday that the U.K. will purchase $10 billion worth of Boeing
Market Sentiment has risen this week in response to more tangible trade deal talks, as U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced Wednesday talks between the U.S. and China will begin in Switzerland this weekend. Still, the Federal Reserve cited uncertainty surrounding Trump's trade policies as one of its key concerns for the health of the U.S. economy, with policy makers holding benchmark interest rates steady at their current range of 4.25% to 4.5% on Wednesday.
"We continue to expect that, with tariffs likely to generate a modest slowdown in GDP growth to around 1.5%, the Fed will leave interest rates unchanged for all of this year," said Paul Ashworth, chief North American economist at Capital Economics, wrote in a report to clients following the May FOMC meeting statement.
In the News:
Alphabet
"We continue to see overall query growth in Search. That includes an increase in total queries coming from Apple's devices and platforms," the company said in a statement. "More generally, as we enhance Search with new features, people are seeing that Google Search is more useful for more of their queries -- and they're accessing it for new things and in new ways."
On the Earnings Front:
Arm Holdings
"We surpassed $1 billion in revenue for the first time in Q4, driven by increased deployment of our CSS platforms across AI data center, cloud compute and mobile," CEO Rene Haas said in a statement. "As AI growth from the cloud to the edge creates demand for more energy-efficient compute, Arm will enable AI everywhere."
Looking Ahead:
Investors will turn their attention towards another series of earnings reports on Friday, including companies like Coinbase