New York, N.Y. — Stock futures hovered near stability on Thursday as investors expressed cautious optimism over a preliminary trade agreement between the United States and the United Kingdom. This announcement marks the first significant trade development since the introduction of “reciprocal” tariffs by the Trump administration last month.
Futures related to the Dow Jones Industrial Average fell by 52 points, a decline of 0.1%. Meanwhile, Nasdaq 100 futures and S&P 500 futures both experienced slight dips, with losses of 0.08% and approximately 0.1%, respectively.
President Donald Trump revealed the details of the nascent trade deal, which retains a 10% baseline tariff on imports from the U.K. Although trade volumes between the U.S. and the U.K. are smaller compared to those with neighboring Canada and Mexico, as well as with China, analysts believe this agreement could signal a shift in U.S. trade strategies. Chris Zaccarelli, chief investment officer at Northlight Asset Management, remarked that this agreement serves as a potential model for future trade negotiations.
“If the administration can build on this framework with additional agreements, it would significantly restore confidence in a stock market that has faced numerous challenges this year,” Zaccarelli noted. Trump further emphasized that the 10% tariff represents a baseline; countries with significant trade surpluses could face considerably higher rates.
As news of the trade deal emerged, stocks surged to session highs, buoyed by Trump’s optimistic comments regarding ongoing trade discussions with China. The Dow finished the day up 0.6%, and the S&P 500 saw a similar increase. The Nasdaq Composite outperformed, rising by about 1.1%.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are set to meet with Chinese officials in Switzerland over the weekend. While Trump decided to maintain a steep 145% tariff on imports from China, he recently announced a 90-day pause on increasing rates for other countries, signaling a complex approach to international trade.
As the week progresses, the S&P 500 is trending towards a 0.4% decline, while the Nasdaq appears on a path to drop by about 0.3%. Conversely, the Dow is on track for its third consecutive weekly gain, showing a modest increase of 0.1%.
Analysts will be watching closely as negotiations unfold, hoping that the groundwork laid with the U.K. trade agreement will lead to more comprehensive trade strategies that could stabilize the markets in the coming months.