Dow jones jumps 254 points as Trump unveils UK trade deal

Wall Street surges after UK-U.S. cement deal on trade

Lola Evans
09 May 2025, 01:44 GMT+10

Dow jones jumps 254 points as Trump unveils UK trade deal

U.S. Presidnt Donald Trump unveiled a new trade deal with the United Kingdom on Thusday.
The president made the announcement from the Oval Office with Britain's prime minister on speaker phone.
The dollar jumped a hefty 1.53 percent to 146.01 Japanese yen, marking a fresh recent high.

NEW YORK, New York - U.S. stocks rose sharply Thursday following the announcement by U.S. President Donald Trump of a new trade deal with the United Kingdom. The president made the announcement from the Oval Office with Britain's Prime Minister Keir Starmer on speaker phone. "The final details are being written up," Mr. Trump said. "In the coming weeks we'll have it all very conclusive."

Despite the lack of detail, the fact that a deal had been done encouraged U.S. equity markets, although gains were trimmed in the final hour of trading.

Following are Thursday's closing quotes for key indexes:

S&P 500 rose 32.66 points (0.58 percent) to close at 5,663.94
Dow Jones Industrial Average gained 254.48 points (0.62 percent) to finish at 41,368.45
NASDAQ Composite jumped 189.98 points (1.07 percent) to settle at 17,928.14

The rally was broad-based, with technology and communication services sectors leading the charge. Mega-cap tech stocks saw particularly strong buying interest, helping propel the Nasdaq to its best daily performance this week.

U.S. Dollar Roars Back to Life

The US dollar surged against major currencies on Thursday, driven by shifting risk sentiment and diverging central bank policies. The Japanese yen and Swiss franc were among the hardest hit, while the euro and pound sterling also faced downward pressure.

Key Moves in Forex Markets Thursday

EUR/USD (Euro to US Dollar) fell sharply to 1.1215, down 0.75 percent, as traders weighed weaker Eurozone economic data against expectations of prolonged higher Federal Reserve interest rates.
USD/JPY (US Dollar to Yen) jumped a hefty 1.53 percent to 146.01, marking a fresh recent high as the Bank of Japan maintained its ultra-loose monetary stance.
USD/CHF (US Dollar to Swiss Franc) climbed 1.10 percent to 0.8324, with the Swiss franc retreating amid reduced safe-haven demand.
GBP/USD (British Pound to US Dollar) dipped 0.37 percent to 1.3239, as UK economic concerns heightened, amid a quarter point drop in official interest rates by the Bank of England Thursday.

Commodity Currencies Under Pressure

The Australian and New Zealand dollars weakened against the greenback, with:

AUD/USD slipping 0.36 percent to 0.6399
NZD/USD dropping 0.62 percent to 0.5902

Meanwhile, the Canadian dollar lost ground, with USD/CAD rising 0.64 percent to 1.3926, as oil price volatility weighed on the commodity-linked currency.

Market Drivers

Analysts attributed the dollar's broad strength to:

Rising U.S. Treasury yields amid fading expectations for near-term Fed rate cuts
Thursday's announcement by U.S. President Donald Trump of a trade deal with the UK
Growing divergence between Fed policy and other major central banks
Risk-off sentiment in equity markets boosting demand for dollar liquidity

Key Levels to Watch Friday:

EUR/USD: 1.1200 support
USD/JPY: 147.00 resistance
GBP/USD: 1.3200 psychological level

Global Stock Markets Diverge on Thursday; DAX and EURO STOXX Lead Gains

Global stock markets delivered a mixed performance on Thursday, with European indices posting strong gains while several Asian and emerging markets faced declines.

Canada

North of the U.S. border, Canada's S&P/TSX Composite advanced 92.88 points (0.37 percent) to close at 25,254.06, supported by gains in financial and energy stocks. Trading volume reached 295.712 million shares.

UK and Europe

The DAX (Germany) surged 236.73 points, or 1.02 percent, closing at 23,352.69, leading the region's rally. France's CAC 40 followed closely, rising 67.60 points, or 0.89 percent, to 7,694.44. The EURO STOXX 50 also climbed 58.75 points, or 1.12 percent, settling at 5,288.94, while the Euronext 100 gained 15.54 points, or 1.01 percent, ending at 1,548.32.

However, the FTSE 100 (UK) dipped 27.72 points, or 0.32 percent, to 8,531.61, and Belgium's BEL 20 dropped sharply by 55.38 points, or 1.25 percent, closing at 4,359.02.

Asia-Pacific and Southeast Asian Markets

In Asia, Hong Kong's Hang Seng Index rose 84.04 points, or 0.37 percent, to 22,775.92, while Australia's S&P/ASX 200 edged up 13.40 points, or 0.16 percent, to 8,191.70. The broader All Ordinaries increased 21.90 points, or 0.26 percent, to 8,421.70.

However, Singapore's STI Index fell 17.15 points, or 0.44 percent, to 3,848.22, and India's S&P BSE Sensex dropped 411.97 points, or 0.51 percent, to 80,334.81. Indonesia's IDX Composite saw a steep decline of 98.48 points, or 1.42 percent, closing at 6,827.75.

Other Key Asian and Pacific Indices:

Japan's Nikkei 225 gained 148.97 points, or 0.41 percent, ending at 36,928.63.
South Korea's KOSPI inched up 5.68 points, or 0.22 percent, to 2,579.48.
Taiwan's TWSE slipped marginally by 3.09 points, or 0.02 percent, to 20,543.40.
Malaysia's KLCI declined 7.16 points, or 0.46 percent, to 1,542.74.
New Zealand's NZX 50 dipped 29.86 points, or 0.24 percent, to 12,467.03.

Middle East & Africa

Israel's TA-125 rose 27.82 points, or 1.05 percent, to 2,669.54.
Egypt's EGX 30 fell 68.40 points, or 0.21 percent, to 31,772.00.
South Africa's Top 40 USD Net TRI Index lost 15.78 points, or 0.32 percent, closing at 4,935.50.