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Wall Street Rallies After US Seals First Trade Deal: 'You Better Go Out And Buy Stock,' Trump Says

Author: Piero Cingari | May 08, 2025 01:00pm

U.S. stocks rallied Thursday after the Trump administration signed its first major trade agreement with the United Kingdom, igniting optimism about further global deals — especially with China — and lifting investor appetite for riskier assets.

The S&P 500 jumped 1.3% to close at 5,700, led by gains in technology stocks. The Russell 2000 soared 2.1%, outperforming larger-cap counterparts and fully recovering the losses triggered by the April 2 tariff announcement.

Under the deal, the U.S. slashed tariffs on UK-made vehicles from 25% to 10%, granting British carmakers a 100,000-vehicle quota. In return, the UK reduced tariffs on American beef to near-zero levels and pledged to purchase $10 billion worth of Boeing Co. (NYSE:BA) aircraft. Trump confirmed that the 10% tariff would remain the baseline for now, though he suggested other nations with large trade surpluses should expect higher rates.

During a press briefing, Trump hinted at the “biggest tax cuts in history” and urged investors to act: "You better go out and buy stock. This country will be like a rocket ship," he said.

The president also responded to Federal Reserve Chair Jerome Powell, who noted a day earlier he hadn't been invited to meet with Trump. "I could call him from a meeting, but it's like talking to a wall," Trump said.

"He's always too late [in cutting interest rates]. But in this case, it's not going to matter that much because our country is so strong."

Markets reflected that strength. The U.S. dollar rallied sharply as the new trade deal and reduced economic uncertainty boosted confidence. The U.S. Dollar Index (DXY) jumped to its highest level since April 11, climbing over 1% against the Japanese yen.

Treasury yields rose across the curve, with the 10-year yield adding 7 basis points to reach 4.34%.

In commodities, gold prices dropped as investors rotated out of safe havens. The SPDR Gold Trust (NYSE:GLD) fell 1.5%, trimming its weekly gains. Oil prices rose 3.5%, with West Texas Intermediate crude topping $60 per barrel.

Crypto markets erupted higher. Bitcoin (CRYPTO: BTC) broke above $100,000 for the first time since February, rising 4.1%. Ethereum (CRYPTO: ETH) surged 13%, while Dogecoin (CRYPTO: DOGE) gained 10%.

Thursday’s Performance In Major US Indices, ETFs

Major IndicesPrice1-day % Chg
Russell 20002,030.85+2.1%
Nasdaq 10020,218.21+1.8%
Dow Jones41,683.40+1.4%
S&P 5005,707.58+1.3%
Updated by 12:10 p.m. ET

According to Benzinga Pro data:

  • The SPDR S&P 500 ETF Trust (NYSE:SPY) rallied 1.4% to $569.13.
  • The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 1.4% to $416.94.
  • The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rallied 1.8% to $491.78.
  • The iShares Russell 2000 ETF (NYSE:IWM) soared 2.2% to $201.78.
  • The Energy Select Sector SPDR Fund (NYSE:XLE) outperformed, up 2.5%; the Health Care Select Sector SPDR Fund (NYSE:XLV) lagged, down 0.4%.

Thursday’s Stock Movers

Stocks reacting to earnings reports included:

  • Fortinet Inc. (NASDAQ:FTNT) down 9.5%
  • Axon Enterprise Inc. (NASDAQ:AXON) down 0.6%
  • Corteva Inc. (NYSE:CTVA) up 6.2%
  • Occidental Petroleum Corporation (NYSE:OXY) up 6.3%
  • Texas Pacific Land Corporation (NYSE:TPL) up 1.5%
  • Atmos Energy Corporation (NYSE:ATO) up 0.6%
  • Fidelity National Financial Inc. (NYSE:FNF) down 7.0%
  • Western Gas Partners LP (NYSE:WES) up 2.9%
  • Shopify Inc. (NYSE:SHOP) down 1.85%
  • ConocoPhillips (NYSE:COP) up 4.30%
  • Canadian Natural Resources Limited (NYSE:CNQ) up 4.93%
  • Cheniere Energy, Inc. (NYSE:LNG) up 0.79%
  • Sempra (NYSE:SRE) up 0.83%
  • Cenovus Energy Inc. (NYSE:CVE) up 8.87%
  • Tapestry, Inc. (NYSE:TPR) up 4.26%
  • Molson Coors Beverage Company (NYSE:TAP) down 3.44%
  • Lincoln National Corporation (NYSE:LNC) down 0.60%
  • PENN Entertainment, Inc. (NASDAQ:PENN) up 1.64%
  • Hanesbrands Inc. (NYSE:HBI) up 5.21%
  • Spectrum Brands Holdings, Inc. (NYSE:SPB) up 3.81%
  • Global Partners LP (NYSE:GLP) down 2.15%
  • NCR Voyix Corporation (NYSE:VYX) up 15.14%
  • Owens & Minor, Inc. (NYSE:OMI) down 7.16%

Stocks slated to report earnings after the close include Akamai Technologies, Inc. (NASDAQ:AKAM), Expedia Group, Inc. (NASDAQ:EXPE), Microchip Technology Incorporated (NASDAQ:MCHP), McKesson Corporation (NYSE:MCK), and News Corporation (NASDAQ:NWSA).

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Posted In: $BTC $DOGE $ETH AKAM ATO AXON BA BTC CNQ COP CTVA CVE DIA EXPE FNF FTNT GLD GLP HBI IWM

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