Stocks experienced an upward trend Thursday morning following the announcement that the U.S. has successfully reached a trade agreement with the United Kingdom. Investors are now eagerly awaiting additional developments regarding tariffs. The S&P 500 and the tech-heavy Nasdaq Composite saw increases of 0.2% and 0.3%, respectively, while the Dow Jones Industrial Average rose by 0.4%. This positive momentum comes after a winning session on Wednesday, breaking a streak of two consecutive days of declines as investors sought signs of progress in trade negotiations, particularly with hopes that President Trump may soften his stance on tariffs.
In a social media post this morning, President Trump described the agreement with the U.K. as full and comprehensive. He is set to unveil more details about the deal at a press conference later today. Additionally, Trump indicated that several other trade deals are currently in serious stages of negotiation, which has piqued investors' interest. Market participants are keen to hear updates regarding these potential agreements and their implications for the economy.
This trade deal with the U.K. precedes highly anticipated discussions scheduled for Saturday in Switzerland between U.S. and Chinese officials. The ongoing trade war has led both countries to impose tariffs exceeding 100% on each other's goods, effectively halting trade and raising concerns about potential product shortages and rising inflation. Notably, Trump stated yesterday that he has no intention of lowering tariffs to coax China to the negotiating table, which adds further tension to the situation.
In the tech sector, shares of major companies saw gains this morning. Alphabet (GOOG) was up 1.5% after experiencing a significant drop of more than 7% the previous day due to reports that Apple is exploring AI-powered search options for its Safari browser, an initiative that could impact Google’s dominance in the online search market. Apple (AAPL) shares also inched higher, while electric vehicle maker Tesla (TSLA) climbed approximately 2%. Other tech giants like Microsoft (MSFT), Amazon (AMZN), and Meta Platforms (META) also reported gains.
However, chipmakers Nvidia (NVDA) and Broadcom (AVGO), which surged late yesterday on news regarding the easing of trade restrictions on semiconductors by the Trump administration, saw slight declines. In other tech news, shares of AppLovin (APP) jumped 13% after the adtech company announced the sale of its mobile game business alongside first-quarter earnings that surpassed analysts’ expectations. Conversely, Arm Holdings (ARM) fell 5% following an outlook that failed to meet expectations on both revenue and earnings.
The cryptocurrency market also experienced a boost this morning as the price of bitcoin soared to nearly $100,000, a level it hasn't reached since February. Strategy (MSTR), recognized as the world's largest corporate holder of bitcoin, rose more than 4%, while crypto exchange Coinbase Global (COIN) and bitcoin miner MARA Holdings (MARA) each saw gains of about 5%. Bitcoin is currently trading at $99,800, recovering from an overnight low of $96,100.
In the commodities market, gold futures declined by 0.8%, settling at $3,365 an ounce, marking a loss for the second consecutive day. In contrast, West Texas Intermediate futures, the U.S. crude oil benchmark, increased by 2.7% to $59.65 per barrel. This rise continues a volatile trend for the commodity, largely driven by ongoing economic uncertainty.
