Wall Street Rallies on US-UK Preliminary Trade Deal

U.S. stocks rallied on Thursday following President Donald Trump’s announcement of a preliminary trade agreement with the United Kingdom, marking the first major deal since earlier tariff impositions. The pact lowers some tariffs, including a reduction of UK tariffs on U.S. goods and exemptions on plane parts, while retaining a 10% baseline tariff on UK imports. Boeing shares surged on expectations of a $10 billion aircraft purchase by the UK, and tech stocks, including Alphabet, also rose amid optimism about easing trade tensions. Trump signaled that weekend trade talks with China in Switzerland could lead to a reduction of the sharp 145% tariffs on Chinese goods, possibly down to 50%, boosting investor confidence. The Dow Jones, S&P 500, and Nasdaq all posted gains, driven by hopes that new trade agreements would prevent a recession and ease global trade conflicts. Market sentiment was further buoyed by rising oil prices and a retreat in gold, reflecting reduced demand for safe-haven assets.