Investor sentiment surged following President Donald Trump’s announcement of a landmark trade deal with the United Kingdom. Framing the agreement as a launchpad for economic acceleration, Trump urged Americans to invest in the stock market, claiming the U.S. economy is poised to “take off like a rocket.” Equities responded in kind major indexes saw notable gains, with the Nasdaq up 1.8%, the S&P 500 climbing 1.3%, and the Dow adding 1.2%. However, these gains come in the shadow of longer-term declines since the start of Trump’s 2025 term, with the S&P 500 still down around 5% overall.
A key component of the US-UK trade deal includes maintaining a 10% base tariff, which Trump described as relatively modest compared to what other nations face. The President implied that more trade would flow between the two nations if the “Big Beautiful Bill” a yet-to-pass piece of domestic legislation gains approval.
In parallel, a major religious milestone occurred as U.S. Cardinal Robert Prevost was named Pope Leo XIV, becoming the first American to assume the papacy. His selection follows the death of Pope Francis in April and was met with widespread celebration in Vatican City, signaling a historical shift in the global religious landscape.
Meanwhile, attention remains on the highly anticipated trade talks between the U.S. and China in Switzerland. Despite positive signals, markets remain divided. The dollar has gained against the euro, while the Japanese yen rebounded slightly amid Beijing’s firm stance that it does not fear a trade conflict. Cryptocurrencies, especially Bitcoin, have rallied with renewed momentum hovering near $104,000 fueling speculation of a break toward record highs.
Oil prices edged up modestly following a 3% rally in the previous session, bolstered by improving trade dynamics and the US-UK deal. Brent crude moved up to $63.07 per barrel, while WTI rose to $60.12. Analysts suggest that a mutual de-escalation agreement in the upcoming U.S.-China talks could add another $2–$3 per barrel to crude prices.
Adding to the backdrop, recent trade data from China showed an unexpected rise in exports and a slower decline in imports, offering Beijing leverage ahead of the weekend negotiations. If progress is made, both energy and equity markets could see sustained relief in the coming weeks.
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