Wall Street Buzzing: US-UK Trade Deal Lifts Spirits, Boeing Skyrockets
U.S.-U.K. pact boosts investor optimism
The US and UK have inked a preliminary trade agreement, sparking a favorable response on Wall Street. The US's primary index, the Dow Jones, closed 0.6% higher at 41,368 points, while the Nasdaq Composite rose 1.1% to 17,928 points and the S&P 500 inched up 0.6% to 5,663 points.
British Prime Minister Keir Starmer and US President Donald Trump announced their decision, with details of the agreement to be finalized at a later date. Notably, the US's 10% tariffs on UK goods would remain, though the UK will slash its tariffs on US goods from 5.1% to 1.8%. The US will also drop tariffs on steel and aluminum imposed by Trump.
Airline stocks soared as aircraft parts from Rolls-Royce became exempt from tariffs. US Trade Minister Howard Lutnick revealed that the UK plans to purchase Boeing aircraft worth $10 billion. However, the specifics, such as whether this is for firm orders or simply options, remain unclear. Boeing's shares leaped 3.3%.
Market experts expressed cautious optimism, with Scott Welch, Chief Investment Officer at Certuity in Maryland, noting, "The market is hoping for a more reasonable outcome than a full-blown global trade war."
Trump anticipated substantial talks between the US and China over the weekend, potentially paving the way for a deal. US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are scheduled to meet with China's Vice-Premier He Lifeng in Geneva on Saturday.
Furthermore, hopes of fewer export restrictions on AI chips have bolstered semiconductor stocks, lifting shares of companies such as Nvidia, Broadcom, and AMD.
Meanwhile, Krispy Kreme shares dived after the donut chain withdrew its guidance, citing economic uncertainties and issues with its partnership with McDonald's. Bitcoin surged by 4.8% to $101,427 due to increased investor risk appetite.
Oil prices also rebounded, with Brent crude oil rising by 3.1% to $63.03 per barrel, and US WTI crude oil increasing by 3.5% to $60.10 per barrel.
For more on today's market events, read here
- Wall Street
- Dow Jones
- Stock prices
- Stock trading
- Boeing
- Semiconductor manufacturers
- Krispy Kreme
- Bitcoin
- Oil prices
- The US-UK trade agreement, announced by Prime Minister Keir Starmer and US President Donald Trump, has sparked optimism on Wall Street, leading to a surge in the Dow Jones, Nasdaq Composite, and S&P 500.
- Airline stocks soared as a result of the trade agreement, with US Trade Minister Howard Lutnick revealing that the UK plans to purchase Boeing aircraft worth $10 billion.
- Moreover, hopes of fewer export restrictions on AI chips have bolstered semiconductor stocks, lifting shares of companies such as Nvidia, Broadcom, and AMD.
- On the other hand, Krispy Kreme shares dived after the donut chain withdrew its guidance, citing economic uncertainties and issues with its partnership with McDonald's.
- Bitcoin also surged by 4.8% to $101,427 due to increased investor risk appetite, potentially influenced by the overall optimism in the stock market.
