In This Article:
NEW YORK (AP) — U.S. stocks are rallying Thursday after the United States and United Kingdom announced a deal on trade that would lower some tariffs and restrictions between the two countries, the first of what Wall Street hopes will be enough agreements to keep a recession from hitting the economy.
The S&P 500 was 1.4% higher in midday trading and on track for an 11th gain in the last 13 days. The Dow Jones Industrial Average was up 566 points, or 1.4%, as of 11:45 a.m. Eastern time, and the Nasdaq composite was 1.8% higher.
It wasn't just stocks. Bitcoin jumped back above $101,000, and crude oil prices climbed, while the price of gold eased back as investors felt less need for safety.
Stocks and other financial markets have been swinging for weeks with hopes that President Donald Trump could reach deals with other countries that would lower his tariffs, which many investors believe would cause a recession if left unchecked. Trump on Thursday lauded what he called a “maxed-out trade deal” with the United Kingdom, which will keep 10% tariffs on U.K. products but would lower taxes on Rolls-Royces and other U.K. automobiles in exchange for greater access in the U.K. market for U.S. beef, ethanol and other products.
Trump said it may take weeks to finalize all the details in the U.K. deal, but he also gave some potentially encouraging updates on talks pending with an even bigger trading partner, China.
The world’s second-largest economy is set to meet with high-level U.S. officials in Switzerland this weekend. China has been calling for the United States to cancel its tariffs, while Trump has said that he wouldn’t reduce his 145% tariffs on Chinese goods as a condition for negotiations.
Asked on Thursday whether he would consider lowering tariffs if this weekend’s talks go well, Trump said, “It could be. We’re going to see. Right now, you can’t get any higher. It’s at 145. So we know it’s coming down.” He also said he expects the talks in Switzerland to be “substantive.”
That helped U.S. stocks roughly double their earlier, more modest gains.
Besides hopes for deals on trade, strong profit reports from U.S. companies have also helped to drive the S&P 500 closer to its all-time high set in February.
Axon Enterprise, the company that sells Tasers, body cameras and other public safety equipment, jumped 14.4% after joining the list. It benefited from strong growth for its software and services, and it raised its forecast for revenue over the full year.
Tapestry rose 4.1% after the company behind the Coach and Kate Spade brands also reported better profit and revenue than expected. It credited new, younger customers in North America, among other things.