U.S.-UK Trade Deal Sparks Stock Market Surge

U.S. stocks rose following a new trade agreement between the U.S. and Britain, lowering UK tariffs. Airline stocks surged due to tariff exemption on Rolls-Royce parts and Boeing's $10 billion UK deal. Upcoming substantial U.S.-China trade talks are anticipated. The Federal Reserve maintains rates, signaling inflation risks.

On Thursday, U.S. stocks experienced significant gains following the announcement of a new trade agreement between the United States and the United Kingdom. This deal included a reduction of British tariffs from 5.1% to 1.8%, providing greater access to U.S. goods, and was met with investor enthusiasm.

Airline stocks notably soared, particularly after the agreement exempted Rolls-Royce plane parts from tariffs. The day was marked by Delta Air Lines leading gains, closing with a 7.2% rise. U.S. Commerce Secretary Howard Lutnick revealed UK's commitment to purchase $10 billion of Boeing aircraft, boosting the company's shares by 3.3%, making it the top performer on the Dow.

In anticipation of upcoming U.S.-China trade negotiations in Geneva, President Donald Trump hinted at the possibility of substantive discussions. Meanwhile, the U.S. Federal Reserve held interest rates steady, cautioning about potential inflation and unemployment risks. Despite a dip in expectations, markets still anticipate a rate cut from the Fed in July, amid stable job numbers and fluctuating productivity figures.

(With inputs from agencies.)