• President Trump credits policy reversals for a 14% S&P 500 surge since April.
  • New UK trade deal sparks intraday gains of 1.8% in Nasdaq 100, with tech stocks leading.
  • Fed criticism continues as Trump pushes for rate cuts to "rocket ship" economic growth.

Markets Respond to Policy Pivot

The S&P 500 and Nasdaq have climbed 14% and 17% respectively since April 9, when President Trump reversed several key economic policies. The rally accelerated this week after the White House announced a tariff reduction agreement with the UK, slashing duties on British luxury goods from 27.5% to 8% while maintaining a 10% universal baseline tariff.

"You better go and buy now," Trump urged from the Oval Office on Wednesday as the Technology Select Sector SPDR Fund (XLK) notched a 21% gain since the policy shift began. "This country will be like a rocket ship that goes straight up."

Trade Winds Shift

Administration officials suggest more trade agreements are imminent, including potential reductions to the 145% reciprocal tariffs on Chinese goods. The market response has been particularly strong in tech and manufacturing sectors, with Rolls-Royce and Jaguar shares benefiting from the UK deal.

But the president's economic team remains at odds with the Federal Reserve. Trump recently doubled down on his criticism of Chair Jerome Powell, dubbing him "Mr. Too Late" for resisting rate cuts that the administration believes would further stimulate growth.

The Powell Factor

While the Fed maintains its wait-and-see approach, traders are pricing in potential rate cuts by year-end. "What we're seeing is classic Trump economics," said one hedge fund manager who requested anonymity due to client sensitivities. "Short-term sugar highs from trade wins, but the structural impacts remain unclear."

The White House hasn't provided details on how it will address potential inflationary pressures from the tariff reductions. Commerce Department officials declined to comment when reached Thursday morning.

Correction: An earlier version misstated the timing of the Nasdaq's gains. The 17% increase occurred since April 8, not April 9.