Global stock markets climbed on Thursday alongside gains in the U.S. dollar and Treasury yields after President Donald Trump announced a trade deal with Britain, coming a day after the Federal Reserve signaled a wait-and-see approach on interest rates.
In the cryptocurrency space, bitcoin jumped 4.83% to $101,440.22, while ethereum surged 14.72% to $2,063.23.
The U.S.-UK trade agreement marked the first deal since Trump implemented a 90-day pause on tariffs targeting several U.S. trading partners, allowing time for further negotiations.
Investors are also watching for upcoming talks between U.S. and Chinese officials in Switzerland this weekend, which could mark an initial step toward easing the trade war between the two largest economies.
Although markets have responded positively to any signs of trade discussions from the Trump administration in recent weeks, investors had shown some frustration over the lack of solid details before Thursday’s announcement.
“Investors are relieved to see some progress on trade deals,” said Gene Goldman, chief investment officer at Cetera Investment Management. He noted the U.S.-UK agreement “brings a bit of optimism” ahead of the weekend’s U.S.-China talks.
On Wall Street, major indexes extended their gains following the trade news. As of 11:51 a.m. (1551 GMT), the Dow Jones Industrial Average was up 573.16 points (1.39%) at 41,685.11, the S&P 500 climbed 77.14 points (1.37%) to 5,708.56, and the Nasdaq Composite added 311.92 points (1.76%) to 18,050.09.
Globally, the MSCI index of world shares rose 0.68% to 849.75, while Europe’s STOXX 600 index gained 0.44%.
Investors were also still digesting Wednesday’s Fed announcement, which left interest rates at 4.25%-4.5% for the third consecutive meeting. The Fed warned of growing risks of inflation and unemployment amid economic uncertainty tied to Trump’s trade policies.
In currency markets, the British pound slipped slightly after the trade deal announcement and a widely anticipated Bank of England quarter-point rate cut, falling 0.14% to $1.3277.
The dollar index, measuring the greenback against major currencies like the yen and euro, rose 0.55% to 100.44. The euro dropped 0.48% to $1.1245, and the dollar strengthened 1.16% against the Japanese yen to 145.49.
Meanwhile, Sweden and Norway signaled potential rate cuts later this year, with Sweden’s crown falling 0.48% to 9.704 per dollar.
In the bond market, the yield on U.S. 10-year Treasury notes rose 5.5 basis points to 4.33%, while the 30-year yield increased 2.9 basis points to 4.8011%. The 2-year yield, which tends to reflect Fed policy expectations, climbed 7.3 basis points to 3.866%.
In commodities, oil prices rebounded after dropping more than $1 on Wednesday, lifted by hopes of progress in U.S.-China trade talks. U.S. crude rose 3.29% to $59.98 a barrel, and Brent crude gained 2.96% to $62.93.
Spot gold fell 1.09% to $3,327.49 an ounce, while U.S. gold futures declined 1.48% to $3,331.30 an ounce.
