Wall Street finished higher overnight, as investors reacted to news of a draft trade deal between the United States and the United Kingdom—President Donald Trump’s first major agreement since launching sweeping tariffs earlier this year.
The Dow rose 254 points to close at 41,368, up 0.62%. The S&P 500 climbed 0.58%, while the Nasdaq jumped over 1%, led by gains in big tech.
In Washington, Trump and UK Prime Minister Keir Starmer announced a framework deal via speakerphone from the Oval Office. A 10% baseline tariff on UK goods will remain, but the President hinted it’s likely to be the floor in future deals. “Some will be much higher,” he said, referencing large trade surpluses held by other countries.
Though no deal was signed, markets cheered the momentum—particularly after Trump suggested U.S. negotiators were preparing for a “good weekend” of trade talks with China. Those discussions will take place in Switzerland, with Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer leading the U.S. delegation.
Bitcoin continues its historic run, briefly topping US$100,000 overnight.
Tech and Boeing lead gains
Tech stocks rebounded sharply. Alphabet climbed nearly 2% after the company pushed back on reports of falling search traffic, noting continued growth in query volume. The rally was also boosted by confirmation that the White House will lift Biden-era chip export restrictions.
Boeing shares rose 3%, after Commerce Secretary Howard Lutnick said the UK deal could involve a multi-billion dollar aircraft purchase.
Tensions escalate in South Asia
Markets were also closely watching developments between India and Pakistan, as tensions in the Kashmir region worsen. India launched a major airstrike earlier this week—dubbed Operation Sindoor—targeting what it said were terrorist camps. Pakistan claims the strikes killed 31 civilians and has promised retaliation. Drone attacks and cross-border shelling have since followed, with mass evacuations now underway on both sides of the Line of Control. Global leaders have urged restraint amid fears of broader conflict between the nuclear-armed neighbours.
EU threatens US with €95bn in counter-tariffs
Meanwhile, the European Union has announced sweeping tariff countermeasures in response to U.S. duties on cars and metals. Brussels is preparing to hit €95 billion worth of U.S. goods—ranging from aircraft to spirits—with public consultation open until June 10. The bloc also filed a complaint at the World Trade Organization, accusing the U.S. of violating global rules. The move escalates tensions in the transatlantic relationship, even as President Trump declared “we intend to make a deal with Europe.”
Commodities and the dollar
WTI crude is trading 3.17% higher at US$59.91 a barrel.
Brent crude is trading 3.44% higher at US$63.22 a barrel.
Spot gold is trading flat at US$3,305.83 an ounce.
One Australian dollar is buying 64.01 US cents.
Australia set for modest open
Back home, the ASX is poised to edge higher at the open, taking its lead from Wall Street’s gains. SPI futures are pointing to a 3 point rise. Investors are eyeing earnings results from Macquarie, QBE, News Corp, and REA Group later today.
