US100 Gains 1.6% on UK-US Deal

7:37 pm 8 May 2025

Trump has said: You better go out and buy stocks now

President Trump unveiled a breakthrough trade framework with the United Kingdom on Thursday, boosting investor sentiment and driving the S&P 500 up approximately 1.5%.

The agreement reduces barriers for American exports while maintaining a 10% baseline tariff. Key elements include:

  • Fast-tracking American goods through UK customs
  • Increased market access for US agricultural exports including beef and ethanol
  • 100,000 UK-manufactured vehicles allowed into the US under a 10% tariff (down from 27.5%)
  • Tariff-free entry for Rolls-Royce engines and plane parts
  • A British airline committing to purchase $10 billion worth of Boeing planes

"This is going to boost trade between and across our countries, it's going to not only protect jobs, but create jobs, opening market access," said UK Prime Minister Keir Starmer, who participated in the announcement via phone.

Commerce Secretary Howard Lutnick indicated this agreement will protect "tens of thousands of jobs" for UK auto manufacturers. Luxury brands like Jaguar Land Rover, McLaren, and Aston Martin stand to benefit significantly.

President Trump emphasized this deal won't serve as a template for other nations: "That's a low number, they made a good deal. Many, some, will be much higher."

Meanwhile, talks with China continue as Treasury Secretary Scott Bessent and USTR Jamieson Greer begin formal negotiations this week. The 145% tariffs on Chinese goods remain in place during these discussions.

The president also encouraged investors, suggesting: "If Congress passes a law extending tax cuts, on top of all of these trade deals that we're doing, this country will hit a point — you better go out and buy stocks now."

US100 (D1)

The Nasdaq 100, represented by US100, is trading above the 20,000 level, which aligns with the 38.2% Fibonacci retracement. Bulls will aim to retest the 200- and 100-day SMAs, while bears will look to push the index below 19,195 — a key level that previously sparked an uptrend — with a target near the 61.8% Fibonacci retracement. The RSI remains above the 48.5 threshold, a level that has historically signaled a return to bullish momentum when breached. Meanwhile, the MACD is beginning to widen, which may confirm a bullish stance. Source: xStation 

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