4:12pm: Trump’s “Buy” signal
Wall Street surged on Thursday as optimism around global trade and a renewed appetite for risk lifted markets across the board.
Investors responded positively to President Trump’s announcement of a new trade agreement with the United Kingdom, as well as his suggestion that tariffs on Chinese imports—currently at 145%—could come down if negotiations progress favorably.
Trump went a step further by publicly encouraging investors to “buy” ahead of this weekend’s US-China trade talks, adding fuel to the rally. As confidence grew, demand for safe-haven assets like Treasury bonds and gold fell, pushing bond yields higher.
All major indexes finished the day with solid gains. The Dow rose by 254 points, or 0.6%, to close at 41,368. The S&P 500 also climbed 0.6%, adding 33 points to finish at 5,664. The Nasdaq jumped 190 points, or 1.1%, ending the session at 17,928. The Russell 2000, which tracks smaller-cap stocks, led the way with a 1.9% gain, adding 38 points to close at 2,028.
Adding to the positive sentiment, the US Treasury unveiled a new fast-track screening process aimed at streamlining foreign investments, particularly from sovereign wealth funds in the UAE, Saudi Arabia, and Qatar. The move is expected to unlock billions in potential inflows and further support market momentum.
Meanwhile, Bitcoin surged past $100,000, reflecting the broader risk-on mood, while traditional safe havens like gold and the US dollar weakened.
3:23pm: Stocks on the move
Boeing will sell $10 billion in aircraft to the UK under a trade deal that also exempts British-made Rolls-Royce parts from tariffs, according to US Commerce Secretary Howard Lutnick.
Boeing shares rose 3.5% after news of the UK aircraft deal, reflecting investor optimism over the major transatlantic sale.
Nvidia shares continued rising after the Trump administration confirmed plans to revoke a Biden-era restriction on advanced AI chip exports.
Warner Bros Discovery jumped nearly 5% after reports it may split its cable networks from its film and streaming operations.
Kenvue shares traded higher after beating second-quarter sales estimates, despite posting a year-over-year decline.
Carvana surged nearly 10% after smashing first-quarter expectations with record profits and strong unit sales ahead of potential auto tariffs.
Coinbase announced it will acquire crypto options giant Deribit for $2.9 billion in the largest-ever crypto industry M&A deal.
Shopify fell nearly 5% after missing earnings expectations and issuing a weak forecast despite a 27% revenue increase.
Molson Coors dropped over 8% after cutting its full-year forecast due to weak demand, inflation, and trade concerns.
Peloton shares declined as investors focused on its wider-than-expected quarterly loss, despite an improved outlook.
Match Group rose after beating revenue expectations and unveiling a 13% workforce reduction in a cost-cutting push.
ConocoPhillips gained 1.7% premarket after beating earnings expectations and announcing a leadership change, supported by a sharp rise in output.
Arm Holdings fell around 9% as investors reacted negatively to its new guidance, despite reporting record fourth-quarter revenue.
1:51pm: Risk appetite still fragile
The US-UK deal has offered some support to stocks, but economic concerns still weigh on the outlook, says IG’s Chris Beauchamp.
“Over the past 24 hours both the Fed and the BoE have warned that the outlook for their respective economies is worsening, though the former seems in no hurry to cut rates while the latter’s divided policy committee indicates that rate cuts may continue at a slower than expected pace," Beauchamp commented.
"Despite this, stock markets around the globe continue to edge higher, though in a far more measured pace than was the case in April.
"Risk appetite remains fragile, since investors remain on watch for signs that a recession is beginning to appear in the data.”
1:00pm: Risk-on rally lifts Wall Street
Wall Street surged midday Thursday, with the Dow Jones and S&P 500 each up 1.6% and the Nasdaq leading with a 2% gain.
Markets rallied on optimism over easing trade tensions after President Trump announced a trade agreement with the UK and signaled possible tariff reductions with China.
This risk-on sentiment boosted nearly all major sectors, especially those sensitive to economic growth, and lifted tech stocks, propelling the Nasdaq higher.
Bond yields edged lower as investors rotated into equities, further fueling the rally.
12:10pm: Geopolitical tensions drive investors to safe havens
Ongoing geopolitical tensions and uncertainty in U.S. trade policy are pushing investors toward traditional safe-haven assets, according to Russell Shor, Senior Market Analyst at Tradu.com.
While equity and bond markets have so far remained resilient—supported by optimism around U.S.-China trade negotiations and the prospect of further central bank easing—Shor warns that the broader investment landscape is increasingly fragile.
"Geopolitical tension is becoming a key driver of asset prices, prompting investors to rotate into traditional safe havens like gold, even as equities and bonds remain resilient for now," Shor said.
He pointed specifically to recent escalations between India and Pakistan and unpredictability in U.S. foreign policy as heightening market uncertainty. Shor also noted that OPEC+ raising oil output signals concerns over demand rather than supply shocks, putting pressure on oil prices and affecting producers in Russia and the U.S.
11:32am: Thursday's headlines
The US is cutting tariffs on UK-made cars to 10%, while tariffs on beef will be cut close to zero, part of a 12-month ‘temporary arrangement’ ahead of striking what Britain and the US hopes will be a comprehensive trade deal in the coming months.
Coinbase Global Inc (NASDAQ:COIN) announced on Thursday it will acquire Deribit, the world’s largest crypto options exchange by volume, for $2.9 billion in a landmark deal that positions the US-based company as the top global platform for crypto derivatives.
Bitcoin climbed above $99,300 on Thursday, edging closer to the closely watched $100,000 threshold for the first time since January.
10:40am: 'Symbolically important' deal
Early details of the just-announced UK-US trade agreement suggest a limited yet symbolically important deal.
While President Trump called it a “full” trade pact, early details suggest the deal is actually quite limited. The 10% baseline reciprocal tariff will stay in place, though there may be some relief for UK auto and steel exports.
Other sectors like pharmaceuticals, semiconductors, and aerospace could be included, but questions remain—especially around whether the hefty 100% tariff on UK film exports will be reduced. The UK seems to have held the line on food and animal welfare standards, even as agricultural imports from the US are expected to rise.
Kathleen Brooks, research director at XTB, called the agreement "a symbolic moment in US trade relations," as the first to be announced since the reciprocal tariffs were delayed last month.
However, Brooks doesn't see the UK deal as a blueprint for other countries.
"The UK deal has taken weeks of intense negotiations, and the UK has a better diplomatic relationship with the US compared to others like China and the EU," Brooks said.
"Added to this, trade between the UK and the US is roughly equal, and the UK does not run huge deficits with the US unlike the EU and China. Thus, it is hard to know what this deal means for global trade relations."
9.55am: Tech stocks lead gains as Wall Street opens higher
US strock markets have opened higher, though not as much as futures had been pointing to earlier.
The Nasdaq has gained 0.6% shortly after the open, with the S&P 500 up 0.5% and the Dow Jones rising 0.4%. The small cap Russell 2000 jumping 1%.
Top risers on the Nasdaq 100 were AI play Applovin Corp and taser maker Axon Enterprise up 15% and 12%
MicroStrategy Inc was up 4% as bitcoin reached its highest levels since early April at $99.2K.
Palantir Technologies Inc and Tesla Inc and Advanced Micro Devices Inc were all up over 3%, with Intel and Meta Platforms next on the leaderboard.
6.50am: Nasdaq expected to power gains at Thursday open
Nasdaq tech stocks are expected to power a further Wall Street rally on Thursday, boosted by Donald Trump confirming that a trade agreement has been struck with the UK and reports that his administration will end chip export restrictions.
US stock futures are also pointing to a strong session ahead, with Nasdaq futures up 1.4%, those for the S&P 500 up 1% and for the Dow Jones 0.85%.
Nvidia stock is up 1.6% premarket, and Intel 3.5%.
Yesterday, the Dow rose 0.7% to lead the gains, with the S&P rising 0.4%, the Nasdaq Composite 0.3% and the small-cap Russell 2000 0.2%.
The market had opened with optimism but gave back some gains as investors weighed the Federal Reserve's decision to keep interest rates steady, along with developments from tech heavyweights.
After markets closed, Trump teased that a "major trade deal" will be announced today at 10am DC time in the Oval Office, with "a big and highly respected country" that media reports quickly suggested was the UK.
"In a Trump 2.0 world it often seems like the news flow doesn't really get going until after the US market closes and today is another example of that," says Deutsche Bank's Jim Reid.
"The media are all lining up behind the deal being with the UK. Given that full trade deals take years to negotiate, this will likely be a framework and it will be interesting to see whether the 10% baseline tariff stays as that will provide an important template for negotiations with other countries and a good guide to the long-term tariff strategy of the US."
On Thursday morning, Trump posted an update on social media confirming that the agreement is with the UK and "is a full and comprehensive one".
Both governments have confirmed that the deal will focus on lowering duties in certain sectors, such as the UK automotive and steel industries, with London offering concessions on food and agriculture imports plus digital taxes.
Further lifting the digital industry were reports of a potential lifting of chip restrictions, known as the AI diffusion rule, which is due to take effect on 15 May.
That rule set creates a three-tiered system governing how many chips countries can import - with nations such as China on the lowest tier, faced with full export restrictions.
"Previous US president Joe Biden had imposed restrictions on who could buy America’s most advanced technology, partly as a way to stop China getting its hands on chips that could enhance its military capabilities," said analyst Russ Mould at AJ Bell.
"There is now the view that China seems to be capable of developing its own technological capabilities, so perhaps Trump has taken the view that it’s better to make money by selling US products to China as the country was always going to advance its capabilities one way or another.
"It could be part of Trump’s bargaining strategy to strike a deal with China. If Trump can say the US has done China a favour by reopening the door to US chips, he might think the US is owed something back by the Asian superpower."