U.S. Stock Market Rises Following Trade Deal Announcement

NEW YORK — U.S. stock prices increased on Thursday after the U.S. and U.K. revealed a trade agreement aimed at reducing certain tariffs between the two nations, marking the first of several deals that Wall Street hopes will stave off a potential recession.

The S&P 500 rose by 0.6%, marking its 11th gain in the past 13 days. The Dow Jones Industrial Average increased by 254 points, also 0.6%, and the Nasdaq composite saw a rise of 1.1%.

In addition to stocks, Bitcoin surged back above $101,000, while crude oil prices rose. In contrast, gold prices dropped as investor demand for safety diminished. Treasury yields increased on speculation that further trade agreements might allow the Federal Reserve to hold off on significant interest rate cuts to support the economy.

For weeks, stock markets have experienced fluctuations driven by optimism surrounding potential trade agreements that may reduce tariffs from President Trump, which many investors fear could lead to an economic downturn if not resolved.

President Trump praised the new “maxed-out trade deal” with the U.K., which preserves a 10% tariff on British goods but reduces taxes on U.K. automobiles in exchange for better access for U.S. products like beef and ethanol in the U.K. market. He noted that it might take weeks to finalize the agreement but shared optimistic updates about ongoing negotiations with China.

The U.S. and China are set to engage in high-level talks in Switzerland this weekend, with China urging the U.S. to lift its tariffs. Trump stated he would not reduce his 145% tariffs on Chinese imports without sufficient progress in negotiations, but suggested that changes could be on the horizon.

Overall, the S&P 500 increased by 32.66 points to 5,663.94, the Dow climbed 254.48 points to 41,368.45, and the Nasdaq rose by 189.98 points to 17,928.14. The U.S. economy has shown resilience, although there is growing pessimism among households due to tariffs, raising concerns about a potential recession.