The stock market reacted positively to President Trump’s announcement on Thursday that a new trade deal had been reached with the United Kingdom. The news was a favorable sign to Wall Street investors who hoped establishing trade deals would stabilize the economy and ward off recession.
During a press conference in the Oval Office, Trump announced the deal with the U.K., calling it an “incredible day for America.” In a welcome sign for investors uncertain about the tariff negotiation process, Trump signaled that the deal with the U.K. would be the first of many.
“Today’s agreement with the U.K. is the first in a series of agreements on trade that my administration has been negotiating over the past four weeks,” Trump said. He described the new agreement as full and comprehensive.
In what appeared to be a positive response to the news, the S&P 500 rose by 1.46 percent. Likewise, the Dow Jones Industrial Average rose by 1.5 percent and the NASDAQ by 1.89 percent.
The stock market has been reacting to tariff news for weeks as the Trump administration works to establish new deals with countries around the world that will strengthen economic relations and work to decrease trade imbalances. The deal with the U.K. may be the first in a series of agreements addressing the 10% tariff Trump implemented on imports to the United States.
Trump spoke positively about the deal’s benefits and potential future investments in the United States, which he said could result in $10 trillion for the U.S. Trump also said the U.K. trade deal was a first step to opening a “tremendous market” that would be especially beneficial for U.S. manufacturing and agricultural products.
The deal with the U.K. is the first to be reached since the Trump administration implemented tariffs last month. Treasury Secretary Scott Bessent is scheduled to meet with China’s lead economic representative to discuss negotiating a potential deal that will stabilize China’s trade relations with the U.S.
