Wall Street rises after US-UK historic trade deal

US stock indices rose on Thursday after the US and the UK announced a major trade deal, and following the Federal Reserve’s policy meeting. 

The risk appetite rebounded strongly in the markets as trade tensions receded with the US reaching a trade agreement with Britain.

Recent US data showed unemployment claims fell by 13 thousand today to 228 thousand in the week ending May 3, while analysts expected 230 thousand.

In a step that wasn’t surprising, the Fed decided to maintain interest  rates unchanged at below 4.5%, due to ongoing economic uncertainty.

The statements asserted the FOMC continues to monitor risks closely, and believes that unemployment and higher inflation risks are on the upside.

The statement hinted that tariffs threaten higher prices and could slow growth, which opens the door to the scenario of inflationary recession.

Trump described Powell as a “fool” and insisted that energy and oil prices alongside most other products have fallen with inflation barely there, and once again demanded a rate cut.

On trading, Dow Jones rose 0.6% as of 15:35 GMT, or 259 points to 41,371 points, while S&P 500 added 0.6%, or 33 points to 5664 points, as NASDAQ rallied 0.7%, or 131 points to 17,868 points.