Stock Markets Rally on US-UK Trade Deal and Trump’s ‘Buy Stock Now’ Call
May 8, 2025 | By Amalya Dubrovsky, Karen Friar, and Ines Ferré
U.S. stock markets surged on Thursday amid renewed optimism around global trade deals and encouraging remarks from President Donald Trump. The Dow Jones Industrial Average (DJI), S&P 500, and Nasdaq Composite all posted gains, buoyed by news of a new U.S.-U.K. trade agreement and the prospect of upcoming negotiations with China.
Major Indexes Post Solid Gains
The technology-heavy Nasdaq Composite led the rally with a rise of roughly 1%. Meanwhile, the S&P 500 increased approximately 0.6%, and the Dow Jones Industrial Average also climbed around 0.6%, adding nearly 250 points. These gains marked a second straight day of market advances following Wednesday’s rally, as investor confidence improved on the back of positive trade developments.
Though stocks retraced some of their intraday highs, the overall tone on Wall Street remained upbeat, reflecting hopes that recent trade tensions may be easing.
Trump Unveils U.S.-U.K. Trade Deal and Urges Investors
In a White House press conference, President Trump announced an agreement with the United Kingdom that he projected would open up billions of dollars in increased market access for American exports. He heralded the deal as a first step in rejuvenating U.S. trade relationships and signaled that discussions with other key trading partners, including China, are on the horizon.
U.S. Commerce Secretary Howard Lutnick confirmed the deal retains a 10% tariff on imports from the U.K. but includes significant tariff reductions on autos and steel, a welcome concession for U.S. manufacturers and investors alike.
Highlighting the overall positive momentum, Trump urged investors to seize the moment, emphatically stating, “You better go out and buy stock now.” He touted a deregulatory agenda and a favorable tax bill underway in Congress as additional factors to boost domestic investments. “This country will be like a rocket ship,” the president declared.
Looking Ahead: China Talks and Tariff Prospects
Trump’s optimism extended to pending negotiations with China. Indicating that Treasury Secretary Scott Bessent will soon travel to Switzerland for talks with Chinese officials, Trump hinted at the possibility of easing some tariff restrictions if progress is made.
Asked about potential tariff reductions, Trump remarked, “We’ll see. Right now, you can’t get any higher. It’s at 145%, so we know it’s coming down.” The prospect of reduced tariffs amid easing trade tensions bolstered market sentiment.
Federal Reserve’s Cautious Stance and Powell Criticism
Investors are also processing the Federal Reserve’s recent decision to hold interest rates steady. Fed Chair Jerome Powell signaled a “wait-and-see” approach amid economic uncertainties and market volatility exacerbated by trade disputes.
President Trump reiterated his criticism of Powell on Thursday, calling him a “fool” who “doesn’t have a clue,” underscoring ongoing tensions between the White House and the central bank leadership.
Crypto Sector Joins the Rally
Notably, Bitcoin surged above $102,000, reaching its highest level since January 2025. The cryptocurrency’s jump aligned with the broader market rally sparked by the U.S.-U.K. trade announcement and hints of tariff de-escalation.
Adding to the positive momentum, Coinbase revealed plans to acquire options trading platform Deribit for $2.9 billion, further boosting investor enthusiasm in the crypto space. Bitcoin rose as much as 5% following the news and Trump’s optimistic trade remarks.
Conclusion
Thursday’s rally reflected growing investor confidence fueled by tangible progress on trade relations and supportive government policies. With President Trump’s call to “buy stock now,” and a promising pipeline of negotiations with key global partners, markets appear poised for potential sustained gains—provided trade talks continue to advance smoothly.
As always, investors remain cautious given the lingering economic uncertainties and geopolitical risks, with Federal Reserve policy and tariff outcomes closely watched in the days ahead.
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