Stocks rose on Thursday, May 8th as investors responded to President Donald Trump’s announcement that the US had reached a massive trade deal with the UK.
Futures were higher after major US indices jumped and Asian and European markets were gained as the announcement strengthened investor sentiment.
The S&P 500 rose 0.6%, with the Dow Jones industrial average rising over 200 points. Nasdaq rose 0.8%, opening higher as the stock appeared to extend the benefits of the previous session. Bitcoin (BTC) rose above $99,000 as cryptocurrency traded higher with other risky assets.
US stocks took a higher edge on Wednesday after Trump posted to the Truth Society that he was set to announce a deal with a major trading partner. He later shared details of the trade deal in another Truth Social Post on Thursday, revealing the UK as a partner.
“The UK agreement is complete and comprehensive, solidifying the U.S.-U.K. relationship for years to come,” Trump posted. “It’s a great honor to have the UK as our first announcement, as our long history and loyalty have come together. Many other deals are at a serious stage of negotiation.”
read more: Bitcoin is approaching $100,000 as Trump teases major trade deals with “big” countries
It offers profits for the overall stock market, albeit modestly, amidst the optimism of investors that tariff uncertainty that has driven a negative outlook is heading towards clarity.
Like the UK, Trump’s administration is expected to hold a high-level meeting between US and Chinese trade officials, with markets being supported earlier this week.
Also, there is a Federal Reserve interest rate path, and the central bank has decided to hold steadily following the two-day meeting that ended May 7th.
Federal Reserve Chairman Jerome Powell signaled the “wait and look” move that Trump had heavily criticized Powell in his recent remarks. He repeated the statement that Powell was “too late,” saying that the Fed chair was “a fool who had no clue.”
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