Futures, Global Markets Jump On Trump Trade Deal With UK

Key Takeaways:

• President Trump is set to announce a trade agreement with the UK, boosting investor confidence.
• The US plans to rescind export restrictions on semiconductors, benefiting tech companies.
• US equity futures and global markets rose sharply on the positive trade news.
• Central banks, including the Bank of England, held interest rates steady amid trade optimism.
• Bitcoin approached the $100,000 mark as easing trade tensions spurred market rallies.

Markets Surge on Anticipated US-UK Trade Deal

Global markets rallied as President Trump hinted at an imminent trade agreement with the United Kingdom. Investors welcomed the news, viewing it as a sign of easing trade tensions that have weighed on economic growth and corporate profits.

“The fear has been of higher prices, company profit margins being squeezed, and the economy going into recession as a result of higher tariffs,” said Kenneth Broux, a strategist at Societe Generale. “If you start unwinding all of that, it’s got to be bullish for risk assets.”

Tech Stocks Climb as Export Restrictions Ease

In addition to the trade deal announcement, the Trump administration plans to rescind Biden-era restrictions regulating the export of semiconductors to various countries. This move sent tech stocks soaring, with Intel rising more than 3% in premarket trading. Peers such as Nvidia and Micron also posted gains.

US Equity Futures and Global Markets Rally

US equity futures surged on the positive trade news. As of 8:00 a.m. ET, S&P futures rose 0.9% while Nasdaq futures were 1.2% higher, both near session highs. The optimism extended to global markets, with the FTSE gaining 0.4%, Germany’s DAX up 1.2%, and France’s CAC rising 1%.

Federal Reserve Maintains Steady Course

Amid the market rally, the Federal Reserve kept interest rates steady, signaling a cautious approach due to increased risks in the economic outlook. The Fed noted that both inflation and unemployment risks have risen but emphasized the economy’s strength to weather trade uncertainties.

Central Banks Hold Rates Amid Trade Optimism

Central banks in Norway and Sweden left interest rates unchanged, as expected. The Bank of England reduced rates to 4.25% before the US trade deal announcement but upgraded its annual growth forecast for 2025. The split vote among BOE officials highlighted the uncertainty in the economy.

Bitcoin Approaches $100,000

Cryptocurrency-exposed stocks rose as Bitcoin neared the $100,000 mark for the first time since February. The surge reflects investor optimism and the search for alternative assets amid easing trade tensions.

Notable Corporate Movements

Several companies experienced significant stock movements in response to the day’s news:

• AppLovin climbed 14% after reporting first-quarter results that beat expectations.
• Arm Holdings tumbled 9% after issuing a disappointing sales forecast for the current quarter.
• MercadoLibre rose 8% following strong growth in its credit portfolio.
• Intel advanced on news of the rollback of chip export restrictions.

Oil Prices Climb, Dollar Strengthens

Oil prices increased by 1.4%, with WTI crude nearing $58.86 per barrel. The dollar also saw gains, poised for its best day in six sessions, with the DXY index up 0.5%.

Looking Ahead

Investors await further developments as President Trump is expected to announce the trade agreement with the UK. Attention also turns to upcoming US-China trade talks scheduled for the weekend, which could further influence global markets.