The US and UK have reached a historic trade agreement, the US plans to ease AI chip bans to stimulate the market, and the three major US stock indices rise.

Taiwan • Business • 05/08 15:05
The US and UK have reached a historic trade agreement, the US plans to ease AI chip bans to stimulate the market, and the three major US stock indices rise.

On May 8, 2025, President Trump of the United States announced a trade agreement with the UK covering industries like automotive, steel and aluminum, agriculture, and aviation, and plans to remove the AI chip export restrictions imposed during the Biden administration. These policies boosted market confidence, leading to a rise in major U.S. stock indices. The Dow Jones Industrial Average climbed 247 points, driven by tech stocks, and the Philadelphia Semiconductor Index rose nearly 2%. Investors are optimistic about the shift in U.S. trade policy and the relaxation of technology export restrictions.

Key Updates

05/09 13:30

Five Key Things to Know Before the U.S. Stock Market Opens on May 9, 2025: U.S.-U.K. Trade Agreement, Corporate Earnings Reports, and Other Key Factors

On May 9, 2025, U.S. stock market investors are focused on the U.S.-UK trade agreement, U.S.-China trade negotiations, corporate earnings, and economic data. U.S. stock futures rose following the U.S.-UK trade agreement; U.S.-China trade negotiations will be held in Geneva, with tariff policies being the focal point; Pinterest's earnings report was strong, while Expedia's stock price dropped due to weak travel demand; U.S. retail sales rose by 1.5% in April, and the Producer Price Index (PPI) fell by 0.4%; Bitcoin broke through the $100,000 mark, and the escalating military conflict between India and Pakistan has heightened concerns over geopolitical risks.

05/09 11:04

President Donald Trump pushes for a new tax reform bill: expects economic growth and criticizes the Federal Reserve for its slow policy

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05/09 03:09

Palantir rises to the top ten US tech companies: Market value reaches $2,810 billion, driven by government contracts and the US-UK trade agreement.

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05/09 03:09

May 9, 2025, U.S. stock futures fall in early trading: The three major indices all fall, market sentiment retreats

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05/08 18:00

UK and US Sign Trade Deal: UK to Buy $10 Billion in Boeing Planes, Boeing Stock Rises 4%, European Markets Mostly Close Higher

On May 8, 2025, U.S. President Donald J. Trump and UK Prime Minister Keir Starmer announced at the White House that they had reached a trade agreement spanning multiple industries, which includes tariff reductions and expedited customs clearance. The UK agreed to purchase $10 billion worth of Boeing aircraft, which boosted Boeing's stock price by 4.25%. European stock markets saw general gains, with the Frankfurt DAX index rising 1.02% and the Paris CAC 40 increasing 0.89%, though the London FTSE 100 dipped slightly by 0.32%.

05/08 15:05

The US and UK have reached a historic trade agreement, the US plans to ease AI chip bans to stimulate the market, and the three major US stock indices rise.

On May 8, 2025, President Trump of the United States announced a trade agreement with the UK covering industries like automotive, steel and aluminum, agriculture, and aviation, and plans to remove the AI chip export restrictions imposed during the Biden administration. These policies boosted market confidence, leading to a rise in major U.S. stock indices. The Dow Jones Industrial Average climbed 247 points, driven by tech stocks, and the Philadelphia Semiconductor Index rose nearly 2%. Investors are optimistic about the shift in U.S. trade policy and the relaxation of technology export restrictions.

05/08 11:04

U.S. stock futures are steadily rising: Dow Jones Industrial Average rises 224 points, led by tech stocks

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05/08 03:04

U.S. stock futures rise in pre-market trading: Dow Jones Industrial Average climbs to 41,324 points, influenced by Federal Reserve policy and trade agreement expectations.

On May 8, 2025 (Taipei time), in early trading, U.S. stock futures rose. Dow Jones Industrial Average futures increased by 110 points to 41,324, S&P 500 futures rose by 26 points to 5,678, and Nasdaq 100 futures climbed 137.5 points to 20,098.5. This rise was due to the Federal Reserve keeping interest rates unchanged and Trump's announcement of a significant trade deal, lifting market sentiment.

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Cantor Fitzgerald Downgrades Marvell's Rating and Price Target: Outlook for Custom Silicon Business Deteriorates, Resulting in Loss of Amazon and Microsoft Orders.

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05/08 02:00

Goldman Sachs Report: U.S.-China Trade Tensions Expected to Escalate in 2025, U.S. Stocks Likely to Face Pressure, Non-U.S. Markets Expected to Perform Steadily

In 2025, global stock markets are turbulent due to geopolitical and policy uncertainties. A Goldman Sachs report indicates that US-China trade tensions and Trump's policies are putting pressure on US stocks, with the market worried about a recession. Federal Reserve Chair Powell is not in a hurry to cut interest rates, and the strong dollar is impacting capital flows. Stock markets outside the US are performing steadily due to favorable valuations and policy support, becoming a key focus for investors.

Detailed Explanation of the US-UK Trade Agreement

The United States and the United Kingdom officially announced on Thursday that they have reached a bilateral trade agreement covering multiple goods and industries. According to details released by both governments, the key points of the agreement include:

  • The US will significantly reduce import tariffs on UK cars from 27.5% to 10%, applicable to an annual quota of up to 100,000 cars, which nearly covers the total volume of UK car exports to the US in 2024.
  • The UK will receive a duty-free import quota for 13,000 tons of US beef and expand market access for US ethanol.
  • The US agreed to implement a zero-tariff policy on UK steel and aluminum exports.
  • The UK will purchase $10 billion worth of Boeing aircraft, while the US will exempt tariffs on UK Rolls-Royce engines and aircraft components.
  • Both parties agreed to further cooperation in the fields of digital tax and economic security, emphasizing that the steel industry will be a key focus of bilateral cooperation.

US Commerce Secretary Howard Lutnick stated that the agreement will create new market opportunities worth up to $5 billion for US exporters, particularly in the agriculture and aviation sectors. He also noted that although some goods will still maintain a 10% tariff, it is expected to generate $6 billion in tariff revenue for the US.

UK Prime Minister Keir Starmer emphasized that this agreement will not only promote bilateral trade but also symbolizes the deepening of US-UK economic security and strategic cooperation. He stated, "Economic security equals national security, and this agreement is a reflection of our shared values."

US Plans to Revoke AI Chip Export Ban

Meanwhile, the Trump administration is reportedly planning to cancel the "AI Diffusion Framework" established during the Biden administration, which was originally set to take effect on May 15. This policy aimed to restrict the export of high-end US AI chips, particularly targeting regions such as China, the Middle East, and Eastern Europe.

According to informed sources, the Trump administration intends to formulate a new semiconductor export policy, focusing on countries with national security risks (such as China), while easing scrutiny for friendly countries in the Middle East and Eastern Europe. Trump himself stated that he is considering relaxing chip export restrictions to Gulf countries and plans to visit Saudi Arabia and other Middle Eastern countries next week to promote bilateral technological cooperation.

A spokesperson from the US Department of Commerce's Bureau of Industry and Security (BIS) pointed out that the rules from the Biden era were overly cumbersome and rigid, and will be replaced by "more streamlined and flexible new regulations" to ensure the US's global leadership in the AI industry.

This policy shift has received widespread support from the tech industry. Ned Finkle, Vice President of Government Affairs at NVIDIA, previously criticized Biden's export restrictions as "misleading and weakening US competitiveness," and Trump's relaxation plan is seen as a major boon for the industry.

Major US Stock Indices Rise in Response

Encouraged by the positive impact of these two policies, major US stock indices rose across the board on Thursday. According to market data:

  • The Dow Jones Industrial Average rose 247.23 points, or 0.60%, to close at 41,361.20 points.
  • The S&P 500 Index rose 39.93 points, or 0.71%, to close at 5,671.21 points.
  • The Nasdaq Composite Index rose 187.82 points, or 1.06%, to close at 17,925.98 points.
  • The Philadelphia Semiconductor Index rose 55.09 points, or 1.26%, to close at 4,441.45 points.

Technology stocks performed well, with NVIDIA (NVDA) up 0.56%, AMD up 3.84%, and Intel (INTC) up 3.55%. Apple (AAPL) and Tesla (TSLA) rose 0.5% and 2.87%, respectively. TSMC ADR slightly declined by 0.27%.

Market analysts pointed out that the clarification of trade policies and the relaxation of technology export restrictions provided positive signals to investors, especially against the backdrop of the Federal Reserve maintaining interest rates unchanged, boosting market confidence in the economic outlook.

US-China Negotiations to Begin Soon

In addition to the agreement with the UK, President Trump revealed that Treasury Secretary Scott Bessent will travel to Switzerland this weekend to begin trade negotiations with senior Chinese officials. Trump stated that Beijing has also expressed a willingness to reach an agreement, emphasizing that "what happens at the negotiating table is important, not who made the first call."

Currently, the US maintains a 25% tariff on certain countries, and Trump stated that these tariffs will continue to be implemented until an agreement is reached.

References

People Also Ask...

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