U.S. Stock Market Summary for Thursday, May 8, 2025

Major Indices

• S&P 500: +0.58% → 5,663.94
• Dow Jones Industrial Average: +0.62% → 41,368.45
• Nasdaq 100: +0.98% → 20,063.56
• Russell 2000: +1.85% → 2,026.41

Market Overview

U.S. equities closed higher on Thursday, lifted by positive sentiment surrounding a newly announced trade agreement with the U.K. and reassurance from the Federal Reserve’s decision to keep interest rates steady. The bilateral deal is expected to ease trade frictions and enhance transatlantic commerce, supporting broader economic confidence. Investors also interpreted the Fed’s rate pause as a signal of stability in the economic outlook.

Sector Highlights

Technology led the gains, fueled by strong performances from semiconductor stocks like NVIDIA and Intel. Expectations of relaxed export controls contributed to the momentum in the chip sector. The outperformance of the Russell 2000 highlighted renewed investor interest in small-cap and domestic growth-oriented equities.

Healthcare underperformed amid uncertainty regarding upcoming regulatory changes, which pressured both pharmaceutical and health insurance names.

Economic Snapshot

• Weekly Jobless Claims declined more than anticipated, underscoring continued labor market resilience.
• Nonfarm Productivity slipped by 0.8% in Q1, indicating reduced output and efficiency.
• Q1 GDP contracted at an annualized rate of 0.3%, marking the first decline since the post-COVID recovery phase.

Expert Commentary

Market strategists noted that the U.S.-U.K. trade deal could serve as a blueprint for future international agreements, potentially reducing global trade tensions. Still, analysts cautioned that economic indicators remain mixed, suggesting a cautious approach to equity allocation and an emphasis on sector diversification.

Government & Political Notes

The White House unveiled a comprehensive trade pact with the United Kingdom, featuring reduced tariffs on key industrial goods such as automobiles, steel, and aluminum. The agreement reflects a broader push by U.S. policymakers to reinforce strategic economic alliances amid global uncertainties.

Conclusion

Wall Street ended the day on a positive note, bolstered by progress in global trade relations and policy stability from the Fed. While technology and small-cap stocks led the advance, macroeconomic challenges—including weaker productivity and a surprise GDP contraction—signal a complex environment ahead. Investors remain cautiously optimistic, balancing growth opportunities with a vigilant eye on economic data.