Market Surge as US-UK Trade Deal Sparks Optimism
The U.S. and UK signed a new trade agreement, prompting Wall Street indexes to climb over 1%. Britain lowered tariffs on U.S. goods, while airline stocks rose due to tariff exemptions for Rolls-Royce parts. The agreement also involved significant Boeing aircraft purchases. Federal Reserve held interest rates steady, highlighting economic uncertainties.
Wall Street's main indexes surged more than 1% on Thursday as investors reacted positively to a new trade agreement between the United States and Britain, marking the first deal since President Donald Trump paused tariffs. Britain agreed to reduce tariffs on U.S. goods, leading to increased market confidence.
Airline stocks soared following the U.S.-UK agreement that exempted Rolls-Royce-made plane parts from tariffs. The S&P Passenger Airlines Index rose 5.3% as the UK committed to purchasing $10 billion in Boeing aircraft, boosting the planemaker's shares by 3.5%. This deal is seen as a significant step toward improving trade relations.
Energy stocks led the S&P 500's sectors, rising 2.4% alongside a crude price jump, while semiconductor stocks gained after potential policy changes on AI chip exports. Traders continue to watch Federal Reserve actions as it keeps interest rates steady, amid ongoing inflation and unemployment concerns.
(With inputs from agencies.)
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