Trade Triumphs Spark Rally: How Boeing, Semis & U.S.–U.K. Deal Could Power Your Portfolio
Market news 09 May
U.S. equity markets closed modestly higher as optimism around a new U.S.–U.K. trade deal and hopes for a breakthrough in weekend talks with China lifted sentiment. Major indices rose between 0.6% and 1.1%: the S&P 500 and Nasdaq 100 hit six-week highs, while the Dow Jones Industrial Average reached a five-week peak.
Trade Deal with the U.K.
The Trump administration officially announced approval of a baseline trade agreement with London. Under the terms, the U.K. will maintain a 10% tariff on U.S. imports, and in return has committed to purchasing over $10 billion worth of Boeing (BA) aircraft. Commerce Secretary Gina Raimondo noted that this precedent could pave the way for similar deals with other countries.
Hopes for Chinese Tariff Relief
On camera, President Trump hinted that after this weekend’s talks in Switzerland, the U.S. is “prepared to cut tariffs on Chinese goods by as much as 50%,” and he identified a potential follow-up conversation with President Xi Jinping. The announcement boosted semiconductor names: the PHLX Semiconductor Index (SOX) climbed 1.7%, with NVDA, AMD, INTC, and MU all up more than 3%.
Rising Yields and Macro Data
U.S. Treasuries came under selling pressure: the 10-year yield rose 10 basis points to 4.37%, and the 2-year yield hit 3.89%. A key catalyst was a disappointing 0.8% drop in first-quarter nonfarm labor productivity and a 5.7% rise in unit labor costs. Meanwhile, weekly initial jobless claims fell to 228,000, underscoring labor-market strength.
New York Fed Inflation Expectations
The April survey from the New York Fed showed one-year inflation expectations steady at 3.6%, three-year expectations up to 3.2%, and five-year expectations down to 2.7%. In addition, the Treasury’s $25 billion auction of 30-year bonds drew only moderate demand (coverage ratio of 2.31).
Mixed Global Results
In Europe, the Euro Stoxx 50 gained 1.12%, while 10-year German and U.K. yields rose by 6 and 8.6 basis points, respectively, after the Bank of England cut its rate to 4.25%. In Asia, China’s Shanghai Composite added 0.28% and Japan’s Nikkei 225 rose 0.41%.
Sector Highlights and Corporate News
Semiconductors continued their rally on reports the Trump administration may lift Biden-era AI chip export limits.
Pharmaceuticals came under pressure as Trump vowed to link U.S. drug prices to lower foreign prices.
Lyft (LYFT) reported Q1 revenue up 14% to $1.45 billion and expanded its $750 million share buyback plan.
Meta (META) rehired FAIR co-founder Robert Fergus to lead its AI research lab.
Coinbase (COIN) delivered Q1 non-GAAP EPS of $1.94 on $2.03 billion revenue despite a 19% drop in transaction income.
Cloudflare (NET) beat Q1 revenue expectations with $479 million (up 26.5%) but issued a cautious Q2 outlook.
British Airways (IAG) is reportedly close to ordering 30 Boeing 787 Dreamliners worth $10 billion.
Nvidia (NVDA) backed the lifting of the AI Diffusion Rule as a step toward U.S. tech leadership.
Investors continue to balance Fed signals, actions by the People’s Bank of China, and expectations around May trade talks as they look for fresh entry points amid persistent uncertainty.