Wall Street rallies as US-UK trade deal lifts markets, Bitcoin tops $101K

US stocks surged Thursday as investor optimism grew following the announcement of a trade deal between the United States and the United Kingdom that could ease recession fears by lowering select tariffs and restrictions.The S&P 500 rose 1.4% in midday trading, marking its 11th gain in the past 13 sessions, while the Dow Jones Industrial Average climbed 566 points (1.4%), and the Nasdaq Composite gained 1.8%.The positive sentiment spilled over into other markets. Bitcoin soared past $101,000, crude oil prices advanced, and gold fell as investors moved away from traditional safe havens.President Donald Trump described the agreement as a “maxed-out trade deal,” noting it would maintain a 10% tariff on British goods but reduce taxes on U.K. luxury automobiles like Rolls-Royce. In return, Britain would provide greater access for American exports including beef and ethanol. Trump said the deal's final details could take weeks but called it a major step forward.Markets also reacted to potentially promising developments in trade negotiations with China. Ahead of weekend talks in Switzerland, Trump said tariff reductions on Chinese goods “could be” considered depending on the outcome. “Right now, you can’t get any higher. It’s at 145. So we know it’s coming down,” he added, referring to the current tariff rate.Investor enthusiasm was further boosted by strong corporate earnings. Shares of Axon Enterprise jumped 14.4% after raising its full-year forecast, and Tapestry rose 4.1% on better-than-expected earnings and growth among younger North American consumers.However, not all companies shared the upbeat tone. Molson Coors fell 3.6% after missing estimates, with its CEO citing a volatile global trade landscape and declining beer consumption. Krispy Kreme plunged 23.3% after withdrawing its full-year outlook due to economic softness and delays in expanding McDonald’s distribution.While the Federal Reserve maintained that the economy remains solid, concerns linger. Productivity slowed more than expected last quarter, which could stoke inflation pressures—especially as tariffs raise costs on imports.Bond yields rose slightly, with the 10-year Treasury yield climbing to 4.33%.Internationally, markets were mixed. The FTSE 100 dipped 0.3% after the Bank of England cut its interest rate to 4.25%, while stocks rose across most of Europe and Asia.