Dow, S&P 500, Nasdaq rally on trade optimism as Trump says 'buy stock now'

US stocks climbed on Thursday after President Trump unveiled a US-UK trade deal and signaled optimism for upcoming China talks, boosting spirits that the tide in the global trade war has turned.

The tech-heavy Nasdaq Composite rose roughly 1%. The S&P 500 climbed around 0.6%, while the Dow Jones Industrial Average also rose 0.6%, or about 250 points.

Stocks came down from bigger highs in the middle of the session, but Wall Street rose for a second day in a row following Wednesday's rally as Trump said a trade deal with the UK would lead to billions of dollars of increased market access for American exports. Trump touted the deal as just the start, saying the trade talks and a tax bill moving through Congress make it a great time to invest in the US stock market.

"You better go out and buy stock now," he said.

A 10% tariff on imports from the UK remains, according to Commerce Secretary Howard Lutnick, but the US will slash tariffs on auto and steel imports.

Trump indicated the rest of the US's trading partners want to make a deal, signaling Treasury Secretary Scott Bessent will be traveling to Switzerland soon to speak with Chinese officials.

When asked if he would consider lowering the current tariffs on imports from China if the negotiations go well, he said: "We'll see. Right now, you can't get any higher. It's at 145%, so we know it's coming down."

Meanwhile, markets are digesting the Federal Reserve's decision on Wednesday to hold interest rates steady. Chair Jerome Powell suggested the central bank will take a "wait-and-see" approach to policy, as he underlined the economic uncertainty and market volatility created by Trump's tariff push. Trump again attacked Powell on Thursday, calling him a "fool" who "doesn't have a clue."