S&P500 and Dow Jones: U.S. Indices Surge on Boeing News, Tech Stocks Join Rally

Wall Street Rallies as U.S.-U.K. Trade Pact Spurs Broad Buying

Wall Street surged Thursday, fueled by the announcement of a U.S.-U.K. trade agreement and optimism over fresh talks with China. The Dow Jones Industrial Average gained 523 points (+1.3%), while the S&P 500 and Nasdaq climbed 1.3% and 1.7%, respectively. The trade deal—marking the first major pact since U.S. tariffs were paused—boosted risk appetite across sectors, particularly in industrials, energy, and consumer discretionary.

Which sectors led the rebound?

Energy stocks topped sector gains, rising 2.4% as oil prices advanced. Industrials closely followed, up 2.2%, supported by strength in Boeing (+3.5%) after U.S. Commerce Secretary Howard Lutnick confirmed a $10 billion aircraft order from the U.K. Consumer discretionary stocks also saw a solid 2.2% rise, while tech advanced 1.8%, aided by easing chip export rules.

Semiconductors added 1.9% on growing expectations that AI chip restrictions would be scaled back. Tesla rallied 4.7%, leading megacap gains, while Alphabet added 2% as the company addressed concerns over search traffic declines.

How did trade developments move stocks?

Airlines surged after the U.S.-U.K. deal excluded Rolls-Royce aircraft parts from tariffs, with the S&P Passenger Airlines Index jumping 5.3%. The broader deal lowered U.K. tariffs on U.S. goods to 1.8%, although a 10% baseline on U.K. imports remains. Market sentiment improved further as President Trump indicated upcoming trade talks with China, despite a steep tariff ceiling of 145% on Chinese imports.

Small-cap stocks also outperformed, with the Russell 2000 gaining 2% and hitting a one-month high, reflecting optimism for domestically focused firms.

Which stocks and earnings reports stood out?

AppLovin soared 12% after strong Q1 results and a divestiture announcement. Carvana gained over 11% on solid earnings, while Crocs surged 10% despite pulling full-year guidance. On the downside, Fortinet fell 8.2% following a soft revenue forecast, and Arm Holdings dropped 4.8% after issuing weak forward guidance.

Kenvue and MercadoLibre both impressed with beats on earnings and revenue, rising over 4% and 7%, respectively. Meanwhile, Krispy Kreme sank 24% as it withdrew guidance, and Cleveland-Cliffs dropped 15.8% after missing estimates.

What’s next for traders?

The Federal Reserve’s decision to hold rates steady, while flagging inflation and unemployment concerns, leaves traders eyeing a potential September cut. Futures markets are pricing in about 73 basis points of easing by late 2025. Attention now turns to this weekend’s U.S.-China meetings in Switzerland, with any trade progress likely to drive next week’s sentiment. Jobless claims data suggesting labor market resilience could temper easing bets, but trade headlines remain in focus for near-term positioning.

More Information in our Economic Calendar.