As investors wait Trade Agreement Between the United States and the United Kingdom. Mr. Trump is scheduled to announce the deal in the Oval Office.
The S&P 500 rose 14 points, or 0.25%, to 5,645 in early trading, while the Dow Jones Industrial Average rose 89 points, or 0.22%, to 41,203. Nasdaq composites also increased by 0.5%.
The deal was announced ahead of the announcement by Mr. Trump on his Truth Social Platform, which will be "full and comprehensive" and "consolidate the relationship between the United States and the United Kingdom for many years to come."
In April, the Trump administration place Import taxes imported from the UK, as well as a 25% tax on cars, steel and aluminum, hit the UK, which exported most of the British cars to the US. According to the Office for National Statistics, British cars account for more than a quarter of UK car exports in 2024.
European stocks have also risen in news of a potential trade deal between the United States and the United Kingdom. By noon, CAC 40 in France and DAX in Germany increased by 1.1%, respectively, while FTSE 100 in the UK increased by 0.3%.
The deal with the UK is expected to be between the United States and its major trading partners. Earlier this week, Treasury Secretary Scott Bessent told the House committee on Tuesday that there are 18 "significant deal relationships" in the U.S. and are currently in talks with 17 deals.
The US-UK deal may be an encouraging start, but larger trading partners can offer greater obstacles, including China.
The world's second-largest economy again called on the U.S. to remove tariffs on Thursday, ahead of talks between Treasury Secretary Scott Bessent and a senior Chinese delegation held this weekend, the Trump administration announced Tuesday.
Meanwhile, Trump said on Wednesday that he would not reduce 145% tariffs on Chinese goods as a condition for negotiations. China has also re-called for the United States to cut unilateral tariffs.
Bloomberg said he told reporters at a press conference on Thursday that the United States "needs to show sincerity to talk and prepare to correct its wrongdoing and remove unilateral tariffs."
Fed cites uncertainty about Trump administration's trade policy Announced on Wednesday It puts its benchmark interest rate in its current range of 4.25% to 4.5%.