Stocks rose Thursday after President Donald Trump announced a trade deal framework between the U.S. and United Kingdom, the first major agreement hatched since the U.S. launched pre-emptive tariffs on most of the globe earlier this year.
The Dow Jones Industrial Average gained 523 points, or 1.3%. The S&P 500 rose 1.3%, and the Nasdaq Composite advanced 1.7%.
Trump announced the deal outline Thursday morning from the Oval Office with U.K. Prime Minister Keir Starmer on speakerphone. A 10% baseline tariff will remain on the U.K., according to a graphic posted on Truth Social post by Trump. Trump, however, noted that the 10% U.K. tariff could be on the low end of deals with future countries and said that "some will be much higher because they have massive trade surpluses."
Otherwise, the trade announcement was short on details and nothing was signed during the event.
"The final details are being written up," Trump said. "In the coming weeks we'll have it all very conclusive."
Major averages hit their highs of the session as Trump said he expects U.S. negotiators to have a "good weekend" with China during opening trade discussions.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are set to meet with their Chinese counterparts in Switzerland this weekend to discuss trade and economic issues. Trump scaled up tariffs on Chinese imports to 145%, even as he lowered his "reciprocal" tariffs on most other U.S. trading partners. Chinese officials said Wednesday that the upcoming meeting was requested by the Trump administration.
"There is increased optimism that deals can be made before the July 9 expiration of the reciprocal pause," CFRA chief investment strategist Sam Stovall said. "However, the initiation of talks could ease pressure on the administration to finalize agreements with other trade partners in the short term."
Tech shares saw a broad uptick after the Trump administration said Wednesday it will remove Biden-era chip restrictions. Shares of Alphabet rose 2% on Thursday after the company released a statement saying Google is continuing to see search query growth, pushing back on press reports Wednesday that cited an Apple executive saying there has been a decline in search on the Safari browser as more people use AI.
Boeing shares rose more than 3% after Commerce Secretary Howard Lutnick suggested the U.S.-U.K. trade deal will lead to a multi-billion dollar order of Boeing planes.
Thursday's moves come after a winning session on Wall Street that saw volatile moves, as investors digested the latest Federal Reserve policy announcement and monitored for signs of progress on trade deals. Market participants share increasing worries that a global trade war could send prices higher and worsen inflationary pressures.
Shares of Boeing were up nearly 3% in late morning trading after Commerce Secretary Howard Lutnick indicated that the U.S.-U.K. trade deal will result in a large order for the company's planes.
"There's going to be an announcement in the UK that they're buying $10 billion worth of Boeing planes later today," Lutnick said in the Oval Office. He did not say which airline would be placing the order or what model of plane is involved.
Some stocks are making big moves in midday trading:
Small-cap stocks saw outsized gains amid Thursday's broad market rally.
The small cap-focused Russell 2000 popped around 1.5% in late morning trading. The S&P 500, by comparison, rose just under 1%.
That marks a turn for this cohort. The Russell 2000 has tumbled more than 9% in 2025, while the S&P 500 has slid more than 3%.
Warner Bros. Discovery shares spiked roughly 6% in early trading after CNBC's David Faber reported that the company could soon announce it would split its streaming and linear TV assets into two entities.
The report followed WBD's first-quarter earnings release, in which the media company missed on both revenue and earnings per share expectations.
On Thursday Faber reported it's still unclear what a split of WBD's assets could entail - whether it would mirror a spinout like Comcast's separation of its cable TV networks or another form - but said an announcement could come in the "not-too-distant" future.
In April, CNBC Sport reported WBD CEO David Zaslav was contemplating a split that would see a low debt entity comprised of Max, the film studio, a gaming division and its content library separated and a separate company made up of the cable TV networks and free over-the-air European assets that would house news and sports.
Another significant weight on the company has been its hefty debt load stemming from its 2022 merger. While Warner Bros. Discovery has been actively paying down the debt it has been cutting back on expenses.
Morgan Stanley reiterated its overweight rating on Liberty Formula One, citing a strong growth outlook even with a volatile macro backdrop.
Analyst Benjamin Swinburne wrote there's "defensive growth for this lifestyle brand," with near term catalysts including a U.S. media rights deal and the Las Vegas Grand Prix later in 2025.
"We also are bullish that the F1 film and the move from a tracking stock to an asset backed equity will expand the popularity of the sport - increasingly a lifestyle brand - and expand the investor base opportunity, respectively," Swinburne said in a research note on Thursday.
Morgan Stanley's $110 price target indicates nearly 18% upside potential from Wednesday's close.
Here's where major U.S. indexes stood shortly after the opening bell:
Productivity declined in the first quarter while the cost of labor rose, the Bureau of Labor Statistics reported Thursday.
Nonfarm business labor productivity contracted at a seasonally adjusted annualized rate of 0.8% for the three-month period, the result of a 0.3% drop in output and a 0.6% increase in hours worked. The headline number was in line with the Dow Jones estimate.
At the same time, unit labor costs jumped 5.7%, as hourly compensation increased 4.8% and productivity fell. The consensus forecast was for a 5.1% increase.
CNN reported on Thursday morning that President Donald Trump's trade deal with the U.K. has some key caveats.