Traders work on the floor of the New York Stock Exchange on Feb. 13, 2025.
Danielle DeVries | CNBC
Stocks gained Friday as President Donald Trump suggested many trade deals are near, while also endorsing cutting the tariff rate on China before weekend talks.
The Dow Jones Industrial Average climbed 111 points, or 0.3%. The S&P 500 advanced 0.4%, and the Nasdaq Composite traded 0.6% higher.
“Many Trade Deals in the hopper, all good (GREAT!) ones!,” said Trump on Truth Social, a day after announcing a preliminary trade agreement with the U.K., which is the first deal between the U.S. and a global trading partner since Trump’s “reciprocal” tariff announcement last month.
Traders hope the U.K. agreement will establish a framework for the U.S. to quickly strike more deals with major nations, even though a 10% tariff rate on the U.K. appears to be the baseline for the globe.
The president also wrote on Truth Social that an “80% Tariff on China seems right” ahead of talks lead by Treasury Secretary Scott Bessent with China counterparts in Switzerland this weekend.
While this is a de-escalation somewhat from the current 145% tariff on China, it’s still higher than many expected where the administration would go to jumpstart talks. Bloomberg News had reported earlier that the rate could be lowered below 60% as soon as this week.
It was also unclear if the president is talking about a long-term tariff rate on China or a temporary one during negotiations.
“While trade with the UK pales in comparison to trade with our neighbors to the North and South, and especially in comparison to China, it is an important test case and a model for what could be accomplished,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “If the administration can follow this up with additional agreements, it would go a long way toward healing a stock market that has been battered and bruised this year.”
Market sentiment has improved somewhat this week because of the U.K. agreement, though traders are waiting to see what happens with China this weekend. Week to date, the S&P 500 is on pace for a flat performance, while the Nasdaq is on track to gain 0.3%. The Dow is toting a gain of 0.5%, heading for its third positive week in a row.
