Stocks experienced an uptick on Thursday following President Donald Trump’s announcement of a trade deal framework between the U.S. and the United Kingdom, marking the first significant agreement developed since the U.S. implemented pre-emptive tariffs on a majority of the world earlier this year. The S&P 500 experienced an increase of 0.58%, concluding the trading session at 5,663.94. The Nasdaq Composite increased by 1.07%, closing at 17,928.14. The Dow Jones Industrial Average increased by 254.48 points, representing a rise of 0.62%, concluding the day at 41,368.45.
Trump revealed the framework of the agreement from the Oval Office, engaging in a conversation with U.K. Prime Minister Keir Starmer via speakerphone. A 10% baseline tariff will persist on the U.K., as indicated by a graphic shared on Truth Social by Trump. Nevertheless, the president observed that the 10% U.K. tariff might represent the lower spectrum of agreements with prospective nations, asserting that “some will be much higher because they have massive trade surpluses.” In summary, the trade announcement lacked substantive details, and no agreements were finalized during the event. “The final details are being written up,” Trump stated. “In the coming weeks we’ll have it all very conclusive.”
Major averages reached their session highs as Trump expressed optimism, stating he anticipates U.S. negotiators will have a “good weekend” with China during the initial trade discussions. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are scheduled to convene with their Chinese counterparts in Switzerland this weekend to deliberate on trade and economic matters. Trump increased tariffs on Chinese imports to 145%, while simultaneously reducing his “reciprocal” tariffs on the majority of other U.S. trading partners. Chinese officials stated on Wednesday that the forthcoming meeting was solicited by the Trump administration. “There is increased optimism that deals can be made before the July 9 expiration of the reciprocal pause,” stated CFRA chief investment strategist Sam Stovall. “However, the initiation of talks could alleviate pressure on the administration to finalize agreements with other trade partners in the short term.”
Tech shares experienced a significant increase following the announcement from the Trump administration on Wednesday regarding the removal of Biden-era chip restrictions. Shares of Alphabet increased by almost 2% on Thursday following the company’s announcement that Google is still experiencing growth in search queries. This statement counters reports from Wednesday that referenced an Apple executive claiming a decline in search activity on the Safari browser as more individuals turn to AI.
Boeing shares experienced a 3% increase following comments from Commerce Secretary Howard Lutnick, who indicated that the U.S.-U.K. trade deal is expected to result in a multi-billion dollar order of Boeing planes. Thursday’s movements follow a successful session on Wall Street characterized by volatility, as investors processed the recent Federal Reserve policy announcement and kept an eye out for indications of advancement in trade agreements. Market participants express growing concerns that a global trade war may lead to elevated prices and exacerbate inflationary pressures.