Global markets sustain optimism over US trade deal as tech stocks lead relief
A screen shows financial market movements at the new building of the Shanghai Stock Exchange in Shanghai on April 25, 2025. (AFP Photo)
Global markets continue to extend their upward trajectory, driven by optimism surrounding international trade developments and solid performance from technology shares.
On Wall Street, all three major U.S. benchmark indices closed significantly higher on Thursday. The S&P 500, widely regarded as the best gauge of overall U.S. stock market performance, rose 2.03% to close at 5,484.77. The Nasdaq Composite, which is heavily weighted toward technology companies, climbed 2.74% to 17,166.04. Meanwhile, the Dow Jones Industrial Average (DJIA), a price-weighted index tracking 30 major U.S. companies, gained 1.23% to finish at 40,093.40.
Investor sentiment was also reflected in the CBOE Volatility Index (VIX)—commonly referred to as the “fear index”—which fell 6.96% to 26.47, indicating reduced market anxiety.
The gains were largely led by the technology sector. Shares of Apple, Nvidia, Meta, Amazon, Tesla, Microsoft, and Alphabet—often referred to collectively as the “Magnificent Seven”—each ended the day in positive territory, contributing significantly to the broader rally.
Asian markets followed suit on Friday, buoyed by the positive momentum in the U.S. and growing hopes for trade progress between Washington and Beijing. Japan’s Nikkei 225, the leading stock index on the Tokyo Stock Exchange, gained 1%. In China, both the Shanghai Composite Index and Hong Kong’s Hang Seng Index opened with slight gains.
Trump signals progress with China, South Korea talks accelerate
The market rally was underpinned by renewed optimism that the United States and China, the world’s two largest economies, may be moving closer to resolving their ongoing trade dispute. U.S. President Donald Trump said Wednesday that any eventual trade deal would be “fair,” emphasizing that the bilateral relationship had become imbalanced under previous administrations.
“We are going to have a fair deal with China. It’s going to be fair,” Trump said during remarks at the White House. “The relationship got out of control under others.”
However, Chinese officials pushed back on claims that tariff negotiations were underway. “As far as I know, China and the U.S. have not consulted or negotiated on the issue of tariffs, let alone reached an agreement,” Chinese Foreign Ministry spokesperson Guo Jiakun stated during a briefing in Beijing, according to state media reports.
Meanwhile, the United States appears to be making progress on trade talks with South Korea. U.S. Treasury Secretary Scott Bessent noted on Thursday that discussions with Seoul may be advancing more quickly than anticipated. “We had a very successful bilateral meeting with South Korea today. We may be moving faster than I thought,” Bessent said, adding that technical-level negotiations could begin as early as next week.
In commodities, spot gold continued to retreat from its recent record high of $3,500 per ounce. As of 7 a.m. GMT on Friday, gold was trading around $3,300, representing a daily decline of approximately 1.5%.
Bitcoin, the world’s largest cryptocurrency by market capitalization, mirrored the positive sentiment seen in equity markets, rising more than 1% to trade near $93,500.
Oil prices remained relatively stable, with West Texas Intermediate (WTI) crude futures last seen at $63.11 per barrel, while Brent crude, the global benchmark, held steady at $66.86.
