Daily Summary: Trade Deal Sparks Rally as Gold Declines and Bitcoin Breaks $100K

8:49 pm 8 May 2025

  • Stocks surge on US-UK trade deal with the S&P 500 jumping 1.4% to 5,686, Dow Jones gaining 1.4% (over 500 points) to 41,523, and Nasdaq leading with a 1.8% increase as investors celebrated President Trump's "breakthrough" trade framework announcement.

  • Trump unveils UK trade agreement maintaining a 10% baseline tariff while increasing market access for American agricultural exports and allowing 100,000 UK-manufactured vehicles at the lower rate instead of 27.5%, with Commerce Secretary Lutnick noting the tariff "will produce $6 billion of revenue."

  • Bitcoin surpasses $100,000 milestone for the first time since February, rising as much as 4% to trade at $100,900 amid growing optimism about Trump's trade stance and continued corporate adoption trends that have pushed the cryptocurrency up over 8% year-to-date.

  • Coinbase announces major acquisition with the largest US cryptocurrency exchange agreeing to purchase crypto options platform Deribit for $2.9 billion, one of the industry's most significant deals ever, sending COIN shares up more than 4%.

  • Oil rebounds on trade optimism as WTI crude climbed nearly 3% to approach $60 per barrel, recovering from recent losses after OPEC+ had agreed to increase output by more than 400,000 barrels per day starting in June.

  • Gold maintains safe-haven appeal trading at $3,316.04 after a 2.3% rally amid ongoing US-China trade concerns despite Trump's UK deal, extending its impressive 26% gain this year after hitting a record around $3,500 in April.

  • Bank of England cuts rates on trade war concerns reducing interest rates to 4.25% from 4.5%, with Governor Andrew Bailey warning about Trump's trade policies weighing on the economy while noting a UK-US trade deal would be "excellent" for economic prospects.

  • China trade talks on horizon as Treasury Secretary Scott Bessent prepares to meet with Chinese officials this weekend, though Trump indicated he wouldn't reduce his 145% tariffs as a precondition for negotiations, stating "Right now, you can't get any higher. It's at 145%, so we know it's coming down."

  • British airline commits to Boeing purchase with plans to acquire $10 billion worth of Boeing planes as part of the US-UK trade agreement, though the specific carrier remains unidentified, helping push Boeing shares up 3.1%.

  • Fed holds rates amid trade uncertainty maintaining its benchmark interest rate at 4.25%-4.5%, with Chair Jerome Powell suggesting a "wait-and-see" approach and highlighting economic uncertainty created by Trump's tariff initiatives.

  • Gold contracts are losing 1.8% today, falling to around $3,300 and simultaneously testing psychological support. Investors are reducing their emphasis on the risk-off strategy, which is reflected in the sell-off of assets considered safer.

  • The US 10Y treasury yields are rising to around 4.378%, increasing by more than 10 basis points since the beginning of the session. An increase in yields is also visible in German bonds, which have climbed back above 2.5%.

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