Quick overview
- Wall Street closed higher on Thursday, buoyed by a new trade agreement between the U.S. and the U.K.
- The Dow Jones rose 0.62%, the S&P 500 gained 0.58%, and the Nasdaq Composite advanced 1.07%.
- The U.K. agreed to cut tariffs on U.S. goods, while the U.S. will maintain a base tariff on imports from the U.K.
- Investor sentiment was mixed as companies like Krispy Kreme and Peloton faced challenges, while Kenvue and Warner Bros. Discovery showed resilience.
Wall Street closed higher on Thursday, lifted by a new trade agreement between the United States and the United Kingdom, which rekindled optimism about improving relations between the U.S. and China.
The Dow Jones Industrial Average rose 0.62% to 41,368.45 points, while the broader S&P 500 gained 0.58% to 5,663.94. The tech-heavy Nasdaq Composite advanced 1.07% to 17,928.14.
Under the deal, the U.K. agreed to cut tariffs on U.S. goods from 5.1% to 1.8% and provide greater market access for American products. In return, the U.S. will maintain a base tariff of 10% on imports from the U.K.
SPX
Adding to investor enthusiasm, U.S. Commerce Secretary Howard Lutnick announced that the U.K. will purchase $10 billion worth of Boeing aircraft, sending Boeing shares up 3.31%, leading gains on the Dow.
The trade pact also fueled expectations for progress in resolving U.S.-China trade tensions. A U.S. delegation is set to meet with Chinese officials this weekend in Geneva, Switzerland, for tariff negotiations.
Earnings Season Surprises
Investor sentiment remained sensitive to earnings forecasts. Shares of Krispy Kreme plunged 24% after the donut chain withdrew its full-year guidance, joining a growing list of companies tempering outlooks.
Media giant Warner Bros. Discovery rose 6%, despite missing first-quarter revenue estimates, as the company faced a lack of blockbuster films and weakness in its traditional TV business.
Kenvue gained 4.2% after reporting better-than-expected results, driven by strong demand for over-the-counter products like Tylenol and Benadryl, which offset weaker sales in skincare and beauty.
Meanwhile, Peloton dropped 6% after posting a third-quarter loss. Although the company raised its 2025 revenue forecast, it continues to struggle with declining demand for fitness equipment and is now betting on growth in subscription-based instructional videos.
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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