Stock market indexes soared on Thursday amid optimism on Wall Street after the Trump administration indicated progress toward easing global trade tensions with a deal with the United Kingdom.

The Dow Jones Industrial Average jumped more than 250 points, or 0.6%, Thursday while technology stocks were also in the green.

The tech-heavy Nasdaq was up 1.1% while the S&P 500 gained 32 points, or 0.6%.

The agreement, described by President Trump as a “full and comprehensive” pact, would mark the administration’s first significant breakthrough since it imposed wide-ranging tariffs that rattled global markets.

British officials, however, sounded more cautious — noting the deal would fall short of a full-fledged trade agreement as some critical elements remain unresolved.

Investors closely watched the announcement, hopeful that a deal could set a precedent for future trade discussions and soften concerns about the prolonged economic impact of Trump’s tariff strategy.

The deal with the UK could also clarify the administration’s long-term tariff plans.

Currently, Britain faces a baseline tariff rate of 10%, alongside 25% tariffs specifically targeting steel and automobiles.

Analysts suggest the details of this preliminary agreement will shed light on whether the White House intends to maintain or gradually dismantle these tariffs.

Treasury Secretary Scott Bessent’s planned visit to China to meet with the nation’s senior economic officials further buoyed investor sentiment, suggesting potential groundwork for broader negotiations with the world’s second largest economy.

Concurrently, administration officials have indicated ongoing talks with India and Japan, while President Trump prepares for a diplomatic visit to the Middle East next week.

Amid global economic shifts, the Bank of England took action by reducing interest rates, highlighting its sensitivity to the “heightened unpredictability in the economic environment.”

The move contrasted with recent Federal Reserve communications, which cited tariffs as increasing risks for higher inflation and unemployment.

Automakers continue to face considerable challenges from tariffs.

Toyota warned that US duties would cost the company approximately $1.2 billion over the next two months alone.

Its Detroit-based competitor Ford withdrew its profit guidance earlier this week amid trade uncertainties. The legacy automaker announced price hikes for three of its popular vehicle models.

Nonetheless, there were more optimistic reactions in the markets.

Benchmark Treasury yields rose past 4.3%, reflecting investors’ expectations of economic stabilization. The WSJ Dollar Index also edged upward, indicating confidence in US economic policy.

Internationally, stock markets responded positively. The UK’s FTSE 100 and Europe’s broader Stoxx 600 index saw gains, while Asian markets broadly advanced overnight.

Cryptocurrencies followed suit, with Bitcoin surpassing the $100,000 mark, as investors sought diversified assets amidst evolving trade dynamics.