Markets Surge as U.S. Trade Momentum Builds
May 8, 2025 By MarketDepth
U.S. markets rallied sharply on Thursday as investor sentiment turned positive following fresh developments in global trade. Major indexes posted strong gains after President Trump announced a new trade agreement with the United Kingdom and hinted at productive talks ahead with China.
The Nasdaq led the way with an impressive 1.8% gain, while the S&P 500 followed with a 1.4% climb. The Dow Jones Industrial Average also advanced approximately 500 points, reflecting a similar 1.4% boost.
Markets extended their upward trend from Wednesday, fueled by the announcement that the U.S.-UK agreement could open the door to billions in additional exports for American businesses.
Though a 10% tariff on British imports remains in place, Commerce Secretary Howard Lutnick confirmed that tariffs on autos and steel from the UK would be reduced—a move seen as a signal of improving trade relations.
Adding to investor optimism, President Trump suggested other global partners are ready to return to the negotiating table. Treasury Secretary Scott Bessent is expected to head to Switzerland shortly to engage in talks with Chinese officials.
When asked whether tariffs on Chinese goods could be lowered, the President responded, “We’ll see. Right now, you can’t get any higher—it’s at 145%, so we know it’s coming down.”
The combination of tariff relief and renewed dialogue has sparked hope for a broader easing of trade tensions, fueling Thursday’s broad-based rally across U.S. equities.
