U.S.-UK Trade Agreement Fuels Stock Market Surge
U.S. stocks surged as investors reacted positively to a new trade agreement between the United States and Britain, lowering tariffs and boosting market confidence. Airline stocks soared following tariff exemptions on Rolls-Royce plane parts. Talks between the U.S. and China also promised substantial discussions, further influencing market trends.
On Thursday, U.S. stocks experienced a significant rally, spurred by a freshly negotiated trade agreement with Britain. President Donald Trump announced that forthcoming discussions with China are expected to be more substantial than previously anticipated, boosting investor confidence.
The agreement involves Britain reducing its tariffs to 1.8% from a prior 5.1% and vast improvements in U.S. market access, while maintaining a 10% baseline tariff on UK goods entering the U.S. The prospect of robust U.S.-China talks prompted a wave of market optimism.
Aviation stocks climbed as the agreement exempted Rolls-Royce plane parts from tariffs, leading to a 6% rise in the S&P 500 passenger airlines index. Commerce Secretary Howard Lutnick confirmed the UK would purchase $10 billion in Boeing aircraft, positively impacting Boeing shares.
(With inputs from agencies.)
Google News