Wall Street rallies on US-UK trade breakthrough and China talks optimism; Nasdaq leads gains

US stocks rose on Thursday, buoyed by investor optimism following President Donald Trump's announcement of a preliminary trade agreement with the United Kingdom—the first such deal since sweeping tariffs were imposed earlier this year.

Hopes also ran high for upcoming trade negotiations with China, sparking a tech-led rally across Wall Street.

The Dow Jones Industrial Average advanced 254.48 points (0.62%) to close at 41,368.45, while the S&P 500 climbed 0.58% to 5,663.94.

The Nasdaq Composite outperformed with a 1.07% gain, ending the day at a record 17,928.14, driven by strength in technology shares.

From the Oval Office, President Trump joined UK Prime Minister Keir Starmer via speakerphone to unveil the contours of the new trade pact.

Though still pending final approval, the deal marks a pivotal step in reshaping post-global tariff-era relations.

A 10% baseline tariff on UK imports will remain, Trump said in a post on Truth Social, noting that future trade partners could face significantly higher tariffs based on trade imbalances.

“The final details are being written up,” Trump told reporters. “In the coming weeks, we’ll have it all very conclusive.”

Markets climbed further during the session after Trump expressed confidence about progress with China, with key negotiators, including Treasury Secretary Scott Bessent and the US.

Trade Representative Jamieson Greer—scheduled to meet Chinese officials in Switzerland this weekend.

Trump’s sharp 145% tariff on Chinese goods remains a sticking point, though sources suggest it could be slashed to as low as 50%, according to the New York Post.

Tech stocks rallied, lifted by a rollback of chip restrictions imposed during the Biden administration.

Alphabet gained nearly 2% after the company dismissed claims of declining Safari search queries, citing continued growth in overall search activity.

Boeing shares also jumped 3%, following Commerce Secretary Howard Lutnick’s remarks suggesting the US-UK deal could pave the way for a large aircraft order.

Despite the upbeat tone, UBS Global Wealth Management warned investors not to get too comfortable, noting that lingering global trade uncertainties and inflation risks will likely continue to drive market volatility.

Elsewhere, biopharma stocks remained under pressure, despite broader market gains. Eli Lilly slid 3%, while Alnylam Pharmaceuticals dropped 5%. Regeneron, Merck, and Amgen all fell between 1% to 2%.

On the corporate front:

Wedbush downgraded Uber to "neutral," citing limited upside after mixed Q1 earnings.

Bank of America cut Archer-Daniels-Midland to "underperform," slashing its price target to $45, pointing to limited growth prospects.

As Wall Street watches for tangible progress in trade talks with both the U.K. and China, investors remain cautiously optimistic, yet braced for more market swings ahead.