From Yahoo Finance: 2025-05-07 23:24:00

U.S. stocks surged after the U.S. and UK announced a trade deal to lower tariffs, aiming to prevent a recession. The S&P 500 rose by 0.6%, Dow Jones by 0.6%, and Nasdaq by 1.1%. Bitcoin hit $101,000, oil prices rose, and gold eased as investors sought less safety. Treasury yields increased on hopes of more trade deals and less need for Fed rate cuts.

President Trump praised the trade deal with the UK, keeping 10% tariffs on UK products but lowering taxes on UK autos. Talks with China are pending, with high-level officials set to meet this weekend in Switzerland. Trump hinted at potentially lowering tariffs on Chinese imports depending on the outcome of the talks.

Strong profit reports from U.S. companies, like Axon Enterprise and Tapestry, pushed the S&P 500 closer to its all-time high. However, Molson Coors fell short of expectations, citing global economic volatility. Krispy Kreme withdrew forecasts due to macroeconomic softness and paused sales rollout at McDonald’s.

The S&P 500 closed at 5,663.94, Dow Jones at 41,368.45, and Nasdaq at 17,928.14. The U.S. economy remains steady, though household pessimism is rising due to tariffs. Mixed reports showed fewer jobless claims but slower worker productivity, potentially impacting inflation and imported product prices.

Treasury yields rose following the reports, with the 10-year yield at 4.38% and the two-year yield at 3.89%. Expectations for Fed rate cuts were tempered. Overseas, the FTSE 100 in London slipped after the Bank of England cut its main interest rate, while other European and Asian indexes rose.



Read more at Yahoo Finance: Wall Street rises on hopes for trade deals that could forestall a recession