US stocks soar on first trade deal with UK

US stocks rose sharply on May 8 as investors cheered news that the US and UK reached a new trade agreement.

At the end of the session, the Dow Jones index increased by 254.48 points (up 0.62%) to 41,368.45 points, the S&P 500 increased by 32.66 points (up 0.58%) to 5,663.94 points, and the Nasdaq Composite increased the most with 189.98 points (up 1.07%) to 17,928.14 points.

US President Donald Trump also signaled that upcoming talks with China would be "more substantive" than expected.

Under the deal, Britain agreed to reduce import tariffs from 5.1% to 1.8% and open the door to US goods, while the US kept the basic tariff of 10% on goods imported from Britain.

US stock indexes rose sharply after the country reached a trade agreement with the UK (Photo: Reuters).

Airline stocks surged after a tariff-free deal for aircraft components made by Britain's Rolls-Royce helped the S&P 500 passenger airline index rise 5.4%, led by a 7.2% gain in Delta Air Lines.

US Commerce Secretary Howard Lutnick revealed that the UK will buy $10 billion worth of Boeing aircraft, causing Boeing shares to rise 3.3%, becoming the strongest gainer in the Dow Jones index.

President Trump also said he expected significant progress in trade talks with Beijing this weekend and "wouldn't be surprised if a deal is reached." Scott Welch, chief investment officer at Certuity in Maryland, said the market was taking a breather and believing a global trade war would be avoided.

By sector, consumer discretionary, industrials and energy led the gains, while healthcare and utilities lagged. The small-cap Russell 2000 index rose 1.9%, hitting its highest level since April 2, when the new tariffs were announced.

Semiconductor stocks continued their upward trend, closing up 1% after news that the Trump administration plans to remove or adjust regulations restricting the export of advanced AI chips.

Meanwhile, the US Federal Reserve (Fed) has just kept interest rates unchanged, while warning of rising inflation and unemployment risks, adding to the economic outlook. However, the market still expects the Fed to cut interest rates by at least 25 basis points at its July meeting, although the expected probability has dropped to 60% from 92% a week ago, according to the CME FedWatch tool.

On the economic data front, initial jobless claims fell more than expected, suggesting the labor market remains strong. However, another report showed first-quarter productivity fell for the first time in nearly three years.

In the Asian market, the developments were mixed in the morning session of May 9 as investors cautiously awaited China's April trade data, amid concerns that export growth would slow significantly due to the impact of US tariffs.

Japan's Nikkei 225 opened up 1.17%, while the Topix index added 1.06%. In South Korea, the Kospi edged up 0.3% while the small-cap Kosdaq index fell 0.59%. Hang Seng Index futures in Hong Kong were trading around 22,732, down slightly from the previous session's close of 22,775.92.

Economists polled by Reuters forecast China's exports to have risen just 1.9% in April from a year earlier, down sharply from a 12.4% jump in March.

In addition, uncertainty about the possibility of the US and China reaching an agreement in the negotiations scheduled to take place in Switzerland also dampened market optimism.

Source: https://dantri.com.vn/kinh-doanh/chung-khoan-my-tang-vot-nho-thoa-thuan-thuong-mai-dau-tien-voi-anh-20250509081604464.htm