On Thursday, U.S. stock markets experienced a significant upturn following President Donald Trump's announcement of a new trade agreement framework with the United Kingdom. This marks the first substantial agreement since the imposition of extensive tariffs by the U.S. earlier this year. The S&P 500 index increased by 0.6%, the Nasdaq Composite climbed approximately 1.1%, and the Dow Jones Industrial Average ascended by 255 points. This rally was driven by optimistic sentiments surrounding trade and a reduction in geopolitical tensions. President Trump characterized the agreement with the UK as a significant milestone that would enhance American exports, although a 10% tariff remains in effect. Additionally, Trump indicated the possibility of reducing tariffs on Chinese goods contingent on the results of upcoming trade negotiations in Switzerland, where American delegates will engage with Chinese representatives.
The technology sector saw notable advances, with Tesla rising 3.1% and Palantir surging 7.8%, offsetting losses sustained in the previous session. Apple and Alphabet also recorded gains, partially recovering from recent declines. Meanwhile, Arm's shares declined by 6.2% following unsatisfactory guidance, and Eli Lilly witnessed a 3.2% drop amidst widespread downturns in the healthcare sector across Europe and North America.
