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Stocks rose Thursday after President Donald Trump announced a trade deal framework between the U.S. and United Kingdom, the first major agreement hatched since the U.S. launched pre-emptive tariffs on most of the globe earlier this year.
The Dow Jones Industrials hiked 593.11 points, or 1.4%, to 41,707.08.
The S&P 500 index took on 81.34 points, or 1.4%, to 5,712.62.
The NASDAQ Composite jumped 338.75 points, or 1.9%, to 18,076.97
Trump announced the deal outline Thursday morning from the Oval Office with U.K. Prime Minister Keir Starmer on speakerphone. A 10% baseline tariff will remain on the U.K., according to a graphic posted on Truth Social post by Trump. Trump, however, noted that the 10% U.K. tariff could be on the low end of deals with future countries and said that “some will be much higher because they have massive trade surpluses.”
Otherwise, the trade announcement was short on details and nothing was signed during the event.
Thursday’s moves come after a winning session on Wall Street that saw volatile moves, as investors digested the latest Federal Reserve policy announcement and monitored for signs of progress on trade deals. Market participants share increasing worries that a global trade war could send prices higher and worsen inflationary pressures.
The Fed on Wednesday kept its benchmark overnight borrowing unchanged, as expected. Fed Chair Jerome Powell said during his post-decision press conference that if announced tariffs remain at their current levels, they could lead to a slowdown in economic growth, a spike in long-term inflation and greater unemployment.
Boeing shares rose more than 3% after Commerce Secretary Howard Lutnick suggested the U.S.-U.K. trade deal will lead to a multi-billion-dollar order of Boeing planes.
Prices for the 10-year Treasury settled back, raising yields to 4.35% from Wednesday’s 4.28%. Treasury prices and yields move in opposite directions
Oil prices sprinted $1.65 to $59.72 U.S. a barrel.
Prices for gold backed off $72.40 to $3,319.50 U.S.