See All Market Updates LiveMajor Indexes Rally as Trade Tensions Ease
The U.S. stock market surged on Thursday, May 8, 2025, as President Trump announced a comprehensive trade deal with the United Kingdom, boosting investor confidence and easing global trade tensions. The major indexes posted significant gains, with technology stocks leading the rally.
The Dow Jones Industrial Average (^DJI) jumped 500 points, or approximately 1.4%, continuing its upward momentum from the previous session. The S&P 500 (^GSPC) climbed around 1.4%, while the tech-heavy Nasdaq Composite (^IXIC) outperformed with an impressive gain of roughly 1.8%.
Today’s rally builds on Wednesday’s gains, which came after the Federal Reserve decided to keep interest rates steady at a range of 4.25% to 4.5% for the third consecutive meeting. Fed Chair Jerome Powell indicated the central bank would take a “wait-and-see” approach to monetary policy amid increased economic uncertainty.
US-UK Trade Deal Boosts Market Sentiment
The primary catalyst for today’s market surge was President Trump’s announcement of a “full and comprehensive” trade agreement with the United Kingdom. During a morning press conference, Trump stated that the deal “will cement the relationship between the United States and the United Kingdom for many years to come.”
While a 10% tariff on imports from the UK remains in place, Commerce Secretary Howard Lutnick confirmed that the U.S. will slash tariffs on auto and steel imports. This development has raised hopes that the Trump administration is pivoting toward dealmaking in its broader trade strategy.
Trump also signaled optimism regarding upcoming trade talks with China, with Treasury Secretary Scott Bessent scheduled to meet with Chinese officials in Switzerland. When asked about potentially lowering the current 145% tariffs on Chinese imports, Trump responded: “We’ll see. Right now, you can’t get any higher. It’s at 145%, so we know it’s coming down.”
Technology Sector Leads the Charge
Technology stocks were standout performers on Thursday, with semiconductor companies receiving a particular boost after reports that the U.S. plans to rescind some Biden-era restrictions on chip exports.
Intel (INTC) rose more than 3% in early trading, while other chip manufacturers including Nvidia (NVDA) and Micron Technology (MU) also posted solid gains. Major tech giants contributed significantly to the rally, with Apple (AAPL), Meta Platforms (META), and Amazon (AMZN) all advancing more than 1%.
Notable Stock Movers
Walt Disney Company (DIS) continued its impressive performance from Wednesday, when it reported better-than-expected quarterly results. The company also announced plans to expand into the Middle East with a new theme park in Abu Dhabi, marking its first major expansion into the region and seventh global resort.
Warner Bros. Discovery (WBD) saw its stock rise as much as 6% amid speculation about a potential company breakup. According to reports, WBD may be preparing to fully separate its declining linear cable networks from its studio and streaming businesses.
Utility stocks have been outperforming the broader market year-to-date, with the S&P 500 Utilities Select ETF (XLU) up more than 6% compared to the overall index. This strength comes despite tariff uncertainty, as power demand continues to surge due to data center growth from AI expansion and increased manufacturing.
Upcoming Market Events
Investors should keep an eye on several key earnings reports scheduled for next week. On Monday, May 12, JD.com (JD) will report its Q1 2025 results. Tuesday will see Cisco Systems (CSCO) releasing earnings after market close. Wednesday brings reports from major companies including Alibaba Group (BABA), Walmart (WMT), and Applied Materials (AMAT).
The following week features additional high-profile earnings, with Home Depot (HD) and Palo Alto Networks (PANW) reporting on May 19-20, followed by Nvidia (NVDA) on May 27, which will be closely watched given the company’s central role in the AI boom.
On the economic calendar, Thursday, May 8, saw the release of initial jobless claims data and U.S. productivity figures for Q1. Friday, May 9, has no major economic announcements scheduled, giving investors time to digest the week’s developments.
Market Outlook
The positive market reaction to the US-UK trade deal suggests investors are hopeful that trade tensions may ease further, particularly with China. President Trump’s comments encouraging stock purchases—”You better go out and buy stock now”—reflect his administration’s confidence in current economic policies.
However, challenges remain. Fed Chair Powell recently noted that “uncertainty about the path of the economy is extremely elevated and that the downside risks have increased,” highlighting the complex environment investors must navigate. The central bank’s cautious approach to interest rates reflects these concerns, with Powell stating there are “cases in which it would be appropriate for us to cut rates this year, there are cases in which it wouldn’t. We just don’t know.”
As global trade developments continue to unfold and earnings season progresses, market participants will be closely monitoring how these factors impact economic growth and corporate profits in the coming months.