MARKET RECAP

Yesterday: U.S. indexes closed higher on Thursday thanks to the announcement of a new trade agreement between the U.S. and U.K. Details are still being finalized, but the deal is expected to include lower tariffs on select imports such as autos, steel, aluminum and aerospace engines. While the deal is expected to have limited economic impact due to its narrow scope, markets welcomed it as a potential framework for future negotiations with other trading partners. The agreement comes as the first major trade development since the U.S. unveiled broad tariff plans in early April. In other action, bond yields rose — with the 10-year Treasury yield climbing to 4.39% — while initial jobless claims were in line with expectations at 228,000, suggesting ongoing labor market strength.

On Our Radar: Markets will be closely watching a slate of Fed speakers (Austan Goolsbee, Christopher Waller, Lisa Cook, Michelle Bowman and John Williams), who will be speaking throughout the day. On the earnings front, ZoomInfo, Hertz and NRG Energy will headline a slate of companies that will be reporting earnings on Monday.

TOP STORY

Wall Street Rallies After U.S. Seals First Trade Deal: 'You Better Go Out And Buy Stock,' Trump Says

Wall Street continued its rally on Thursday as investors welcomed a landmark trade deal between the U.S. and the United Kingdom — a move that many believe could be the first domino in a broader shift toward global trade stability.

The S&P 500 rallied, the Russell 2000 outperformed and tech stocks led the charge. It also helped that President Trump continues to pour fuel on the fire by teasing tax cuts and urging investors to go out and buy stocks.

But is this just a relief rally, or the beginning of a larger bull run? With the dollar surging, gold retreating and and yields on the rise, the market is sending mixed signals.

Read on for all the details.

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FIVE ZINGERS

Revved Up: Shares of Carvana hit a new 52-week high after crushing Q1 earnings. With a bright outlook and bullish analyst upgrades, click to see why this once-troubled stock is turning heads again.

Dropify: Shares of Shopify fell despite the company topping earnings estimates on both the top and bottom lines. Here’s the full story on why.

Arm & Leg: Arm Holdings delivered record-breaking earnings, but disappointing guidance left investors feeling short-changed. With the stock dropping and analysts trimming targets, check out the details to find out if this AI darling is still worth an arm and a leg.

Rolling In The Dough: Shares of Papa John’s surged after the company exceeded earnings expectations and reassured investors that tariff impacts would be minimal. The company did warn about this potential headwind.

Ad Surge: The Trade Desk crushed Q1 estimates, beating on both the top and bottom lines and sending shares up as much as 20% after hours. With signs of a turnaround taking hold, click here to find out why this former market darling may be poised for a comeback.

ONE FOR THE ROAD

Forget Rate Cuts This Year, Bank Of America Warns After Powell's Hawkish Tone

Bank of America is making a bold prediction: don’t count on any rate cuts from the Federal Reserve in 2025.

The warning comes after the latest policy meeting, where Fed Chairman Jerome Powell struck a hawkish tone, suggesting the central bank is more focused on battling persistent inflation and rising unemployment than on cutting rates. With inflation still above the Fed’s 2% target and economic uncertainty growing, policymakers are signaling that they’re comfortable leaving rates where they are for the foreseeable future.

This shift in the Fed’s stance is already shaking up market expectations. The likelihood of a rate cut in June has dropped significantly, and projections for cuts later this year are being dialed back. With the Fed’s reluctance to ease monetary policy, the path forward is becoming clearer: inflation concerns are likely to persist, and the road to economic stability could be more prolonged than many had hoped.

Click here for all the details.

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