Stock Indices Rise on US-UK Trade Deal & Incoming China Talks – US Market Wrap

Wall Street experienced a risk-on wave, with stocks rising and bonds falling, as Donald Trump announced a trade agreement with the United Kingdom while noting that if China talks go well, tariffs could be reduced. Equities also rose after the president advised investors to buy shares now.

For a market hoping for an easing of tensions between the United States and its top trading partners, that was enough to fuel an S&P 500 rally, which faded in the final stretch of trading. While most major industries experienced growth, economically sensitive sectors led the way. Bitcoin surpassed $100,000. As the safety bid faded, gold and haven currencies fell. Short-term Treasury yields rose as traders reduced bets on rate cuts.

Trump portrayed his trade agreement with the UK as a historic achievement and the first step in his revolutionary effort to transform the global economy. As the United States prepares to begin talks with China, the primary target of Trump’s tariffs, the president expressed confidence that negotiations could result in tangible progress.

Trump also stated that positive trade news, combined with Republican efforts to pass legislation extending and expanding his signature tax cuts, should be cause for investor optimism.
“This country will hit a point that you better go out and buy stock,” Mr. Trump stated.

The S&P 500 increased by 0.6%. The Nasdaq 100 rose 1%. The Dow Jones Industrial Average rose 0.6%. The Russell 2000 gained 1.8%.
The yield on 10-year Treasuries rose 11 basis points to 4.37%. A weak $25 billion sale of 30-year bonds also weighed on the market. The Dollar gained 0.6%.