U.S. stock indices experienced a rally on Wednesday, May 8, 2025, following the announcement of a trade agreement between the U.S. and the United Kingdom. The agreement involves maintaining a 10% tariff on UK products entering the U.S. while reducing import duties on British vehicles.
President Trump indicated that the deal could cut the U.S. trade deficit significantly. The Nasdaq Composite led the gains, increasing by 1.1%, or 189.98 points. The Dow Jones Industrial Average (DJI) also saw an increase of 0.6%, and the S&P 500 climbed by 0.6%.
However, in contrast, the UK's FTSE 100 index experienced a slight dip of 0.3% on Wednesday. This decline marks the second day of losses following a previous 15-day rally.