Wall St edges up as US-UK trade deal stokes optimism

Wall Street has inched higher as investors awaited the announcement of a trade deal between the United States and the United Kingdom, which is set to be the first such agreement the US signs after President Donald Trump paused tariffs last month.

Trump said he would hold an Oval Office news conference about a "full and comprehensive" trade agreement with the United Kingdom and the UK is likely to secure a reduction in US tariffs on cars and steel, the hardest-hit sectors.

The news followed indications from the Trump administration that negotiations with partners were underway but markets are waiting for a concrete announcement on the tariffs front.

"The (proposed) trade deal with the UK is the first announced framework of a deal... after we get some of the details, we'll have a template for what other trade deals may look like," said Art Hogan, chief market strategist at B Riley Wealth.

Officials said earlier in the week that representatives from the US and China would meet over the weekend in Switzerland for "ice-breaker" trade talks after weeks of tit-for-tat tariffs that have sparked worries about global economic growth.

As markets move towards the close of earnings season, the outlook for companies remains a top priority to gauge how they plan to navigate tariff-induced uncertainty.

Krispy Kreme's shares sank up to 20.6 per cent after the restaurant chain became the latest to withdraw its full-year forecast.

In early trading on Thursday, the Dow Jones Industrial Average rose 66.85 points, or 0.16 per cent, to 41,180.82, the S&P 500 gained 10.78 points, or 0.19 per cent, to 5,642.06, and the Nasdaq Composite gained 67.15 points, or 0.38 per cent, to 17,805.95.

Energy stocks led gains among the S&P 500's 11 sectors with a 1.3 per cent rise, tracking a jump in crude prices.

The sector had taken a hit on expectations of weak demand in the event of a recession.

Semiconductor stocks gained 0.6 per cent, building on the previous session's gains after a spokesperson said the Trump administration was planning to rescind and modify a rule that curbed the export of sophisticated artificial-intelligence chips.

The US Federal Reserve held interest rates steady on Wednesday and flagged heightened risks of inflation and unemployment, further clouding the economic outlook for the world's largest economy.

Traders expect a rate cut only by September and are pricing in a total of 74 basis points of lowering by 2025-end, according to data compiled by LSEG.

On the data front, jobless claims fell more than expected last week, suggesting the labour market continued to chug along.

Among others, US-listed shares of Arm plunged 6.7 per cent after the chipmaker forecast first-quarter revenue and profit below Wall Street estimates.

Tapestry added 5.0 per cent after the luxury group raised its annual forecasts while Fortinet slumped 12 per cent after the cybersecurity firm's second-quarter revenue forecast came in below estimates.

Warner Bros Discovery gained 5.8 per cent after a report said the company was headed for a split.

The streaming firm had missed its quarterly revenue estimates.

Advancing issues outnumbered decliners by a 2.45-to-1 ratio on the NYSE and by a 1.59-to-1 ratio on the Nasdaq.

The S&P 500 posted 10 new 52-week highs and three new lows while the Nasdaq Composite recorded 34 new highs and 61 new lows.