Stock Market Today: Stocks end higher as markets react to US-UK tariff deal

Updated at 4:20 PM EST by Rob Lenihan

Stocks ended higher Thursday, as markets reacted to an impending tariff deal between Washington and London following a dour assessment of the trade war impact from the Federal Reserve. 

The Dow Jones Industrial Average rose 254 points, or 0.6%, to end the session at 41,368.45, while the S&P 500 advanced 0.6% to close at 5,663.94, while the tech-heavy Nasdaq gained 1.1% to finish at 17,928.14.

Chris Zaccarelli, chief investment officer for Northlight Asset Management, said that a trade agreement – even if it’s an agreement in principle – is what the markets were looking to see.

“In the beginning of April, the markets showed how much they disapproved of across-the-board, punitive tariffs and a week later, they showed how well they would receive a more measured approach,” he said.

While trade with the UK pales in comparison to trade with our neighbors to the North and South, and especially in comparison to China, Zaccarelli said that it is an important test case and a model for what could be accomplished.

"If the administration can follow this up with additional agreements, it would go a long way toward healing a stock market that has been battered and bruised this year," he said.

Updated at 12:47 PM EST

Buy rockets 

Stocks are moving firmly higher into the afternoon session after President Trump touted the potential of a trade deal with China and said markets are likely to rise once he's able to match that deal with an extension of its first-term tax cuts.

“This country will hit a point that you better go out and buy stock,” Trump said. “Now, let me tell you this, this country will will be like a rocket ship that goes straight up.”

The S&P 500 was last marked 83 points, or 1.47% higher on the session, with the Nasdaq rising 339 points, or 1.91%. The Dow gained 623 points while the mid-cap Russell gained 46 points 2.34%.

Here's an updated look at the S&P 500's percentage change in the first year of Trump 1.0 vs. 2.0 (so far): pic.twitter.com/xM0EfvRf9J— Bespoke (@bespokeinvest) May 8, 2025

Updated at 10:58 AM EST

Agree to agree 

President Trump unveiled details of a tariff agreement with the United Kingdom during a live event from the Oval Office, but the terms appeared to fall far short of the "comprehensive" package he had touted earlier this morning.

Trump said the "final details are being written up" but said Prime Minister Kier Starmer would fast-track U.S. goods into the UK and further reduce non-tariff barriers. 

Stocks pared earlier gains following the President's statement, with the S&P 500 last marked 12 points, or 0.12% higher and the Nasdaq up 70 points, or 0.43%

US Pres. Trump: US-UK Deal Increases Access For Us Beef, Ethanol

- UK To Eliminate Non-Tariff Trade Barriers
- UK To Fast-Track US Goods Through Customs Process
- Details Of Deal Being Written Up In Coming Weeks
- US Exports To ‘Move Fast’ Through UK Customs— LiveSquawk (@LiveSquawk) May 8, 2025

Updated at 9:34 AM EST

Opening bounce

The S&P 500 rose 39 points, or 0.67% in the opening minutes of trading, with the Dow rising 220 points on the back of trade deal optimism heading into today's press event with President Donald Trump and UK Prime Minister Keir Starmer. 

The Nasdaq, meanwhile, gained 176 points, or 1%, with AI chipmakers pacing the early gains.

"After the Fed left rates unchanged yesterday, Fed Chair Powell said that while employment and inflation risks were elevated, the economy is in a good place right now," said Chris Larkin, managing director for trading and investing at E*Trade from Morgan Stanley. 

"Today’s modest jobless claims total didn’t signal any cracks in the labor market. But trade remains the primary story, and markets will likely take their cues from how upcoming negotiations unfold," he added.

S&P 500 Opening Bell Heatmap (May 08, 2025)$SPY +0.71%