The positive sentiment on Wall Street on Thursday, May 8, 2025, was significantly boosted by the prospect of progress in the tariff conflict between the USA and UK. These developments led to significant gains in the major US indices: The Dow Jones index rose by 1.4 percent to 41,672 points, the S&P 500 increased by 1.3 percent, and the Nasdaq Composite even gained 1.7 percent.
Trade Agreement Boosts the Market
The background to this development is a trade agreement between the USA and the UK, which US President Donald Trump and British Prime Minister Keir Starmer announced. Trump confirmed a “full and comprehensive” trade deal with the UK – a significant trade success following a period of extensive tariffs. However, representatives from the UK emphasized that the agreement primarily focuses on reducing tariffs in certain sectors and that further details still need to be clarified.
Positive Effects on the US Dollar
These advancements in the tariff conflict are also positively affecting the US dollar, thus driving both stock and currency prices. The prospect of easing tensions in the trade dispute strengthens investor confidence in market developments.
USA-China Thawing Relations
Additionally, there are signs of a thaw in relations between the USA and China: US Treasury Secretary Scott Bessent is currently traveling to Switzerland for discussions with Chinese Vice Premier He Lifeng. This fuels hopes that this smoldering tariff dispute could also be settled through negotiations – contributing overall to the positive market sentiment.
In summary:
- The prospect of progress in the tariff conflict between the USA and UK triggered strong price gains on Wall Street on May 8.
- A “full and comprehensive” trade deal was confirmed by President Trump; however, details still need to be clarified.
- This development strengthens the US dollar in addition to stock prices.
- In parallel, there is hope for relaxation in trade with China.
These factors make the situation particularly interesting for investors due to the potential for sustainable market impulses worldwide.