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Stock Market Today: Stocks Rally as Trump Pushes Trade Deals and Market Optimism Rises

Stock Market Today: Stocks Rally as Trump Pushes Trade Deals and Market Optimism Rises cover

U.S. stocks rallied on Thursday as President Trump announced a major trade deal with the United Kingdom and showed optimism around future talks with China, fueling investor confidence and extending Wednesday’s rally.

By midday, the Dow Jones Industrial Average (DJI) was up 628 points, or 1.53%, while the S&P 500 (GSPC) gained 1.47%. The tech-heavy Nasdaq Composite (IXIC) led the charge, surging 1.92% as investors responded positively to easing trade tensions and the prospect of future economic stimulus.

Trump said the UK deal would significantly boost American exports and hinted that negotiations with China could lead to reduced tariffs, spurring hopes that the administration is pivoting away from its more aggressive trade stance.

Market Movers

Trade Optimism Shifts Market Tone

Thursday’s gains show a pivot in sentiment around trade policy, with Trump’s UK deal signaling a potentially less confrontational strategy moving forward. The president described the agreement as "very large" and highlighted expanded access for U.S. agricultural exports, steel, and autos. While a 10% tariff on UK imports remains, analysts see the reduction of tariffs on key sectors as a sign of progress.

Further bolstering optimism, Treasury Secretary Scott Bessent is expected to travel to Switzerland to meet with Chinese officials. Trump hinted that the current 145% tariffs on Chinese imports could come down depending on how talks go — a major shift from his prior hardline stance.

Fed Holds Steady as Trump Attacks

Amid the market rally, the Federal Reserve's decision to leave interest rates unchanged added another layer of support for equities. Fed Chair Jerome Powell emphasized a cautious "wait-and-see" approach, citing economic uncertainty largely driven by tariff tensions.

However, Trump continued his criticism of the central bank, calling Powell a "fool" and saying he "doesn’t have a clue." While such remarks typically add volatility, markets appeared to shrug off the rhetoric, focusing instead on positive developments on trade and deregulation.

Looking Ahead

With investor sentiment rebounding on trade news and hopes for deregulation and tax cuts, the focus now shifts to whether Trump's promises will materialize into further concrete policy moves. Markets will closely watch Bessent’s China trip for signs of thawing tensions and any potential tariff relief. At the same time, analysts caution that volatility may return quickly if talks falter or if the Fed signals a change in tone. For now, though, bulls are firmly in control.

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