United States benchmark averages advanced on Thursday (Friday AEST) after President Donald Trump announced a preliminary trade deal framework between the United States and the United Kingdom, marking a major development since the White House imposed sweeping global tariffs earlier this year.
The Dow Jones Industrial Average climbed 254.5 points, or 0.6%, to close at 41,368.5. The S&P 500 added 32.7 points, also up 0.6%, to finish at 5,663.9. Meanwhile, the Nasdaq Composite surged 190.0 points, or 1.1%, ending the session at 17,928.1.
Speaking from the Oval Office with U.K. Prime Minister Keir Starmer on speakerphone, Trump said the framework marked a "first step" in a broader trade shift.
According to a graphic posted on Trump’s Truth Social account, a 10% baseline tariff will remain on imports from the U.K.
Although no formal agreement was signed, Trump said negotiators are finalising the language. “The final details are being written up,” he said. “In the coming weeks we’ll have it all very conclusive.”
Markets rallied further on optimism about the upcoming talks with China. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are scheduled to meet with Chinese officials in Switzerland over the weekend to address ongoing economic tensions.
Tech shares were among the session’s top gainers following the administration’s decision to roll back chip restrictions enacted under President Biden.
Alphabet rose 1.9% after issuing a statement defending continued growth in search traffic, countering recent reports of a slowdown in Apple’s Safari browser due to artificial intelligence (AI) usage.
Boeing also rallied 3.3% after Commerce Secretary Howard Lutnick said the U.K. trade deal could lead to a multi-billion-dollar aircraft purchase from the American aerospace giant.
On the bond market, yields moved sharply higher. The 10-year Treasury note rose 2.6% to yield 4.38%, while the 2-year yield also jumped 2.6% to 3.88%.
