NASDAQ advances as Trump to announce trade deal with UK: NVDA, SHOP, ARM, GOOGL

Markets grow excited over a US trade deal with the UK.
Alphabet denies a decline in search queries on Apple devices.
ARM Holdings stock sinks 7% on lower guidance for next quarter.
Nvidia stock rises on news that Trump administration will forgo AI Diffusion rule.

Clay Webster FXStreet

The NASDAQ Composite advanced at the start of Thursday trading as US President Donald Trump announced that his administration had brokered a trade deal with the United Kingdom (UK). The details are expected at an oval office speech later in the morning session.

The Telegraph newspaper is reporting that the US will lower its tariff on imports of UK-made autos to 10%

The NASDAQ (IXIC) gained 0.8% at the outset, while the S&P 500 and Dow Jones Industrial Average (DJIA) hovered closer to 0.5% higher.

The market also digested company news from a number of other major names, including ARM Holdings (ARM), Nvidia (NVDA), Alphabet (GOOGL) and Shopify (SHOP).

Stock market news on Thursday, May 8, 2025

The leader in AI chipsets Nvidia stock saw its fortunes continue to gain steam on Thursday after Bloomberg reported just before the close on Wednesday that the Trump administration was prepared to end the AI Diffusion rule that was scheduled to go into effect on May 15 and would limit what AI chips could be exported to China, Russia, Iran and North Korea.

The policy was enacted in the final days of the Biden administration, which had already halted exports of Nvidia's H100 chip from being sold to China. The Trump administration has also placed restrictions on Nvidia's H20 AI chip, which it had designed for the Chinese market and to counteract the Biden administration's earlier policy.

It is not clear how the Trump administration would replace the AI Diffusion rule, but the market has taken the news as a positive sign of things to come. Nvidia CEO Jensen Huang has been adamant that the policy would hurt the industry, saying the AI Diffusion rule would "derail innovation and economic growth worldwide".

Alphabet stock is bouncing back on Thursday after selling off 7.3% on Wednesday. That sell-off was due to Apple's Vice President of Services, Eddy Cue, saying that user searches on its Safari browser had fallen in April for the first time in 20 years. The default search engine in Safari is Google. Owing to this trend, Cue said that Apple was considering adding an AI search option to the browser.

Alphabet shot back on Thursday, saying that Google queries on Apple devices were, in fact, up in April. This announcement sent GOOGL stock up 1.7% at the time of writing.

Arm Holdings stock fell some 7% on Thursday after the company announced less-than-stellar guidance for the coming quarter. Management expects to earn between $0.30 and $0.38 in adjusted earnings per share (EPS), a step below the $0.42 that Wall Street had been guiding for. Additionally, the chip designer said revenue would arrive between $1 billion and $1.1 billion rather than the $1.1 billion consensus from the Street.

Shopify stock sank more than 8% in the premarket after unveiling Q1 results that showed a larger-than-expected drop-off in QoQ segment revenues. While remaining up on an annual basis, Subscription revenues at Shopify fell 6.9% from Q4, while Merchant Solutions revenue fell 18.9% in that period. Both segments typically decline on a quarterly basis in Q1, but this pullback is larger than past experience. Shares, however, recovered somewhat in the regular session and are down 2.7% at the time of writing.

NASDAQ Composite index daily chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.