From Yahoo Finance: 2025-05-08 06:08:00

U.S. stocks rose on news of a trade deal between the U.S. and UK, with Britain agreeing to lower tariffs to 1.8%. Airline stocks surged after the agreement exempted plane parts from tariffs. Trump hinted at substantive talks with China, boosting market confidence. The Dow closed up 0.62% at 41,368.45.

Consumer discretionary, industrials, and energy sectors performed well, while healthcare and utilities lagged. The Russell 2000 small-cap index reached its highest level since April. Semiconductor stocks rose after the Trump administration planned to modify a rule on exporting AI chips. The Fed kept interest rates steady, citing inflation and unemployment risks.

Initial jobless claims fell, indicating a stable labor market, but worker productivity declined in Q1. Arm’s shares fell 6.2% after a weak revenue forecast, while Tapestry rose 3.7% on raised annual forecasts. Krispy Kreme’s shares plummeted 24.7% after withdrawing its full-year forecast. Advancing issues exceeded decliners on NYSE and Nasdaq.

S&P 500 saw 18 new highs and five new lows, while Nasdaq recorded 58 new highs and 98 new lows. U.S. exchange volume was 16.85 billion shares, slightly below the 16.86 billion average over the last 20 days. Markets expect a Fed rate cut in July, with expectations at 60%, down from 92% a week ago.



Read more at Yahoo Finance: Wall Street gains as first trade deal reached