US markets surge on trade breakthroughs as Boeing and Delta lead industrials​

​​​Wall Street climbs on trade optimism; Boeing, Delta lead industrials

​US equity markets closed higher on Thursday, supported by investor enthusiasm over the newly announced US-UK trade agreement and anticipation of US-China talks this weekend. The Dow Jones Industrial Average rose 0.62%, the S&P 500 added 0.58%, and the Nasdaq Composite gained 1.07%, as the major indices rebounded from recent volatility. The Russell 2000 small-cap index surged 1.9%, reflecting broader market optimism.

​Boeing led the Dow higher, advancing 3.3%, after the UK confirmed a $10 billion aircraft purchase, part of a broader agreement that slashed US tariffs on British steel, aluminium, and cars, and reduced UK duties on US goods. Delta Air Lines gained 7.2%, helping lift the S&P 500 airline index by over 5%, as aviation-related trade exemptions buoyed sentiment.

​Semiconductor stocks also rallied, with the SOX index up 1% following signals that Washington may roll back AI chip export restrictions. In corporate news, Arm Holdings fell 6.2% after issuing a cautious quarter one (Q1) forecast. Tapestry rose 3.7% on an upgraded annual outlook, while Krispy Kreme dropped 24.7% after withdrawing its guidance.

​Markets also absorbed a steady Federal Reserve (Fed) policy update, with rates held unchanged and concerns lingering over inflation and labour market softening. Weekly jobless claims improved more than expected, though Q1 productivity registered its first decline in nearly three years. 

​Asia mixed, Japan outperforms; China lags ahead of weekend trade talks

​Asian markets posted mixed results on Friday. Japan’s Nikkei 225 rose 1.5%, extending its rally to an 11th consecutive session—its longest since 2017—helped by a weaker Japanese yen and improved trade sentiment. The Topix index also gained 1.2%. In contrast, China’s CSI300 slipped 0.2%, while Hong Kong’s Hang Seng edged up 0.2%, as caution prevailed ahead of US-China negotiations scheduled for Saturday in Geneva.

​Elsewhere, Taiwan’s TWII rose 1%, Australia’s ASX 200 added 0.4%, and the MSCI Asia-Pacific ex-Japan index was little changed.

​Commodity markets extended their rally. Nymex crude added 0.2% to $60.02, while Brent crude oil rose 0.3% to $63.00, following Thursday’s significant gains. Spot gold fell for a third straight day, down 0.5%, as risk sentiment continued to improve. 

​UK assets in focus as trade deal, easing policy attract global investors

​Investor sentiment towards the UK has improved sharply following the first formal trade agreement between London and Washington, which included tariff cuts on British car exports and metals. This, combined with expectations for a Bank of England (BoE) rate cut cycle, a firmer pound, and signs of renewed UK-EU cooperation, has drawn fresh global attention to UK equities and gilts.

​The FTSE 100 has recently completed its longest winning streak on record, and the FTSE 250 rose 0.6% in late Thursday trading. Sterling is near a 38-month high against the US dollar, supported by improving sentiment and relative stability in fiscal policy.

​Fund managers from Fidelity, Insight Investment, and Invesco suggest the UK may benefit from a shift in global capital away from a more volatile Wall Street and a weakening dollar. Overseas pension funds are reportedly showing renewed interest in UK assets, including debt issued by domestic banks and utilities.

​With inflation pressures easing due to lower oil prices and a stronger currency, analysts expect the BoE to follow Thursday’s rate cut with further easing, offering additional support for British markets.

​In company news, International Consolidated Airlines Group (IAG) posted a strong start to 2025, with Q1 operating profit rising by €130 million to €198 million, supported by resilient travel demand—especially in premium cabins—and lower fuel costs. The group reiterated its full-year outlook and continued shareholder returns via €530 million in buybacks and a €435 million dividend for 2024.

​Rightmove maintained its guidance for 8–10% revenue growth and a 70% operating margin in 2025, with growth across core and strategic areas. The company highlighted continued innovation—including AI search tools and valuation features—and noted rising engagement and partner interest across its platform.