Markets Open Higher Amid Trump-UK Trade Deal Buzz, But Analysts Urge Caution

Wall Street opened in the green Thursday as investors reacted to President Donald Trump’s early morning announcement of a trade deal with the United Kingdom. At the opening bell, the Dow Jones Industrial Average rose 227 points (+0.55%), the Nasdaq climbed 192 points (+1.09%), and the S&P 500 advanced 39.40 points (+0.70%).

The gains followed a pre-market boost sparked by President Trump’s post on Truth Social, where he declared, “The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come.”

The announcement comes ahead of a 10 a.m. ET press conference at the White House, where further details are expected. However, market analysts remain cautious, suggesting the agreement may be more symbolic than substantive. Analysts worry the deal is likely a narrowly scoped framework rather than a sweeping overhaul of trade policy.

Despite being pitched as “major,” insiders suggest the deal focuses on specific sectors such as steel and autos. U.S. tariffs on British goods, including a 10% baseline tariff and a 25% levy on steel and aluminum, remain largely intact. British negotiators are pushing for relief, while potentially offering concessions on digital services taxes that target American tech giants like Google and Amazon.

The early market optimism could give way to a “sell the news” reaction if the deal underdelivers. Analysts warn that without concrete tariff reductions or broader trade reforms, the agreement may not significantly alter the economic landscape.

As the press conference approaches, investors are watching not only for details of the UK deal but also for signals on negotiations with larger partners like China, Japan, and the EU. Until then, markets remain sensitive to trade policy rhetoric and geopolitical signals.