U.S. stock futures climbed early Thursday after former President Donald Trump said he would announce a major international trade deal. The news lifted investor confidence and sparked a rally in futures trading ahead of the U.S. market opening.
Trump posted on social media that he would hold a news conference from the Oval Office to reveal a “MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY.” While he did not name the country, multiple reports, including from The Wall Street Journal, suggest the agreement involves the United Kingdom.
The deal is expected to be a framework that includes changes to tariffs. If confirmed, it would mark the first trade agreement announced by the Trump administration during this presidential term.
Markets React With Optimism
As of 5:40 a.m. ET, Dow Jones Industrial Average futures were up by 0.77%. S&P 500 futures rose 1.04%, and Nasdaq 100 futures gained 1.41%. All three major indexes responded positively to expectations of improved international trade relations.
The early surge suggests that Wall Street is welcoming the possibility of a renewed focus on global trade, especially after a period marked by uncertainty and cautious sentiment among investors.
The market boost came at a time when investors have been looking for signs of economic strength and policy clarity. A trade deal with the UK could ease concerns over tariffs and supply chains, especially in industries like manufacturing, technology, and agriculture.
What the Trade Deal Could Mean
According to sources cited by the Wall Street Journal, the expected deal includes a general framework for future agreements and likely features adjustments to existing tariffs. The specific terms are not yet public, but analysts say even a partial deal could help both countries.
The UK has been eager to establish stronger trade ties with the U.S., especially after Brexit. A bilateral agreement would benefit industries in both nations and potentially set the stage for broader trade cooperation.
For the U.S., the deal could help reduce trade deficits and support American exporters. It may also signal a policy shift toward more structured and strategic trade efforts.
Corporate Earnings Also Move Markets
In addition to the trade news, several companies reported earnings that caught investors’ attention.
AppLovin, a mobile tech company, posted better-than-expected quarterly results. The company also revealed plans to sell its mobile gaming business to Tripledot Studios for $400 million in cash and a 20% equity stake in Tripledot’s common stock.
This move is seen as part of AppLovin’s strategy to refocus on its core software platform, which has shown strong growth in recent quarters.
Meanwhile, Arm Holdings released financial guidance that disappointed investors. Despite beating earnings expectations for the previous quarter, the company expects weaker performance in the coming months.
Skyworks Solutions provided a bright spot in the tech sector. The chipmaker’s second-quarter earnings beat analysts’ forecasts, and it issued a strong outlook for the third quarter, suggesting continued demand for its products.
Analyst Views and Economic Outlook
Market analysts say the trade news adds to a string of recent indicators pointing to economic recovery. While inflation remains a concern, signs of strong earnings and international cooperation could help sustain market momentum.
“A trade deal with the UK, even if it’s just a framework, sends a positive signal,” said Mark Peterson, senior market strategist at Wallstreet Updates. “Investors want to see action on trade, and this could be a turning point.”
However, experts also caution that details matter. The strength of the agreement will depend on how comprehensive it is and how quickly it can be implemented.
A Broader Impact on Global Markets
International investors are also watching the developments closely. A U.S.-UK trade deal could encourage other countries to seek similar agreements with Washington, especially if the terms are favorable.
European markets responded with moderate gains, while Asian markets showed mixed results. The FTSE 100 in London rose slightly on hopes of closer trade ties with the U.S.
A finalized deal could lead to stronger economic ties between the two allies, offering more opportunities for investment, innovation, and growth in both economies.
What’s Next?
Trump is expected to deliver more details during a press event later today. Market watchers will be paying close attention to the scope and timeline of the proposed deal.
If the agreement includes specific sectors such as technology, pharmaceuticals, or energy, it could have ripple effects across global supply chains.
