By Heard Editors

What Happened in Markets Today

President Trump announced the outlines of an agreement on trade with the U.K. The deal is the first of its kind since the administration unleashed "Liberation Day" tariffs five weeks ago. The pact, which appeared to have been put together hastily by U.S. and British officials, is fairly limited in scope. The Trump administration agreed to roll back tariffs imposed on British steel and automobiles in exchange for purchasing Boeing jets and giving American farmers greater access to U.K. markets.

Stocks rallied and gold declined. The S&P 500 has risen 10 of the past 12 days and was up 0.6% at the close. The Nasdaq Composite gained 1.1% and the Dow increased by 0.6%, or 254 points.

Treasury Secretary Scott Bessent is traveling to China. He will meet China's lead economic representative, potentially paving the way for broader trade talks with the world's second-largest economy. Speaking at the Oval Office, Trump said that the administration has more deals in the works. "Everyone wants a deal," he said of nations besides the U.K. including China.

The EU is considering which American industries to retaliate against. The European Union said it could target American cars, car parts, airplanes and other products with tariffs if negotiations with the U.S. break down. The European Commission, the bloc's executive body, on Thursday released a fresh list of about 95 billion euros worth of American products that it says could face tariffs, equivalent to about $107 billion.

Google-parent Alphabet stock bounced back. The stock gained 1.9% after plunging Wednesday after a senior Apple executive said that Google searches over the Safari web browser fell over the last two months. There's a cloud of uncertainty that hangs over the company after losing not one but two federal antitrust cases over the last nine months. But even without government intervention, Google suddenly looks vulnerable, writes Heard on the Street columnist Dan Gallagher.

This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.

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(END) Dow Jones Newswires

May 08, 2025 17:11 ET (21:11 GMT)

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