"The president is telling you to buy stocks now, what are you waiting for?" This statement from the White House ignited global capital market sentiment instantly. On the evening of May 8, Beijing time, U.S. President Trump announced in the Oval Office: **The U.S. and the U.K. have reached a preliminary trade agreement framework.** This is not only a turning point in trade policy but also a mobilization of confidence in the capital market.
Trump stated bluntly that this agreement will "drive the U.S. economy to a critical juncture," and now is the urgent moment for investment. His remarks directly propelled the S&P 500 index (SPY) to a rapid rise, which at one point increased by 1.4% during trading, finally closing up 0.7% at $565.06. Meanwhile, Trump did not forget to criticize Federal Reserve Chairman Powell, calling him "Big Late Powell," saying, "The whole world is cutting interest rates, but he is still dragging his feet." On one side, the government is vigorously raising market expectations, and on the other side, there is open pressure on monetary policy; this scene resembles a silhouette of a tug-of-war between the market and power.
More dramatically, Trump also turned his attention to Mattel, threatening that if the company moved its production lines out of the U.S., it would impose a 100% tariff on its products. Following this news, Mattel's stock price plummeted over 5% during trading. The capital market experienced a dual baptism of "ecstasy" and "panic" in just a few hours, leaving people breathless.
So, what does this U.S.-U.K. trade agreement really mean? Is it a real boon for the market, or just another short-term emotional hype? Behind the capital frenzy, it is worth our deeper, calm reflection.
The "breakthrough" of the agreement: from trade friction to a "safety net."
According to Trump's public statements, this agreement framework focuses on expanding U.S. product market access to the U.K. Especially in the agricultural sector, beef, ethanol, and "almost all products produced by great farmers" will enjoy more export opportunities. The U.K. will eliminate or reduce multiple non-tariff barriers while simplifying the customs clearance process for U.S. products, achieving "very, very fast, without cumbersome procedures" for export approvals. This adjustment is evidently aimed at addressing the technical trade barrier issues that have existed between the U.S. and the U.K. in the past.
In addition to agricultural products, the agreement also opens new channels for U.S. chemicals, machinery, and industrial goods. Trump stated that the U.K. will be included in a framework that is "consistent with the U.S. economic security system." The hidden meaning behind this statement goes beyond economic cooperation; it also implies a strategic level of "binding." U.S. Secretary of Commerce Ross further revealed that this agreement is expected to bring as much as $5 billion in new export space for U.S. products, while saving thousands of jobs in the U.S. steel and aluminum industries.
The context of the agreement is even more intriguing. Just last month, Trump announced a 10% "reciprocal tariff" on almost all countries, and the U.K. was no exception. Just a few weeks later, this agreement not only "exempted" the U.K. but also granted it special treatment. Clearly, this is a rapid shift from pressure to negotiation and from confrontation to compromise. Trump stated on Truth Social: "It is a tremendous honor to announce the U.K. as the first! More agreements are under negotiation, stay tuned." This undoubtedly sends a signal to the world: the U.S. is willing to reach "individual agreements" with allies, but other countries wishing to "enjoy the same treatment" need to demonstrate "sufficient sincerity."
The market's "frenzy": Is it really worth it to "buy stocks now"?
After Trump shouted "buy stocks now," the three major U.S. stock indices surged instantly, Boeing's stock price skyrocketed due to favorable new orders, gold prices plummeted, and oil prices approached $60. This scene easily recalls the fervor of the "Trump Rally" that started in 2017.
But from a rational perspective, this is just a framework agreement, with details yet to be determined and many variables still present regarding policy implementation, regulatory support, and tariff adjustments. The U.K. government has also emphasized that this is not a complete free trade agreement, as some areas still face complex negotiations. In other words, the market's reaction is more of an emotional "expectation ahead," rather than a "price re-evaluation" based on the actual content of the agreement.
For ordinary investors, recklessly "following the trend" at this time may face the risk of short-term fluctuations. Amidst the noise, how to filter out the real signals? This is the most pressing question in the current market environment.
In this context, utilizing a set of intelligent investment research tools with data integration, real-time analysis, and sentiment monitoring capabilities becomes particularly important. Platforms like Mlion.ai, by combining on-chain and off-chain data, policy news, public opinion changes, and institutional research reports, can help users gain insights into the potential impact of events on the market at the first moment, rather than just following the surface-level "shouts." Especially in situations where personal statements from individuals like Trump can directly trigger market fluctuations, Mlion.ai's "flash deep analysis" and "sentiment analysis" features can provide investors with calm and objective secondary judgments, helping to avoid falling into the emotional trap of "chasing gains and cutting losses."
After all, the capital market has never been a place where decisions are made based on who is "shouting," but rather a battleground for information processing and risk management capabilities. AI-empowered investment research tools can help ordinary investors reduce the disadvantages brought about by information asymmetry in a complex and changing market, allowing for more rational participation in trading.
Future Outlook: The agreement is just the beginning; the real test lies ahead.
In the long term, the establishment of the U.S.-U.K. trade agreement framework does indeed lay a new cooperative foundation for the economic and trade relations between the two countries. For the U.S., it enhances industrial penetration into the U.K. and expands markets in agriculture, industry, energy, and other sectors; for the U.K., it finds an important "safety net" post-Brexit, helping to alleviate tariff pressures and boost certain export industries. However, this is only the "beginning"; future negotiations involving more complex areas such as services, intellectual property, digital trade, and financial openness may prove to be the real "hard battles."
For other countries around the world, the signal released by this agreement is very clear: prioritizing individual agreements, marginalizing the multilateral system, and the trend of economic alliances under the guise of "security." This means that the future global trade order will face more challenges of "fragmentation," with both risks and opportunities for countries and enterprises relying on multilateral trade.
In conclusion, Trump's "buy stocks now" is a mobilization of sentiment and a political statement. The real market opportunities may not lie in the moment of the shout but in the subsequent implementation of policies. In the face of short-term market sentiment and long-term structural changes, ordinary investors need to make calm and rational judgments rather than blindly following "shouting-style positives." In this market filled with variables and narratives, information processing ability will be the key to determining investment success.
This is why an intelligent investment research platform that integrates news flashes, on-chain data, sentiment tracking, and real-time analysis, like Mlion.ai, is becoming an increasingly essential tool for many investors. It not only helps you "quickly" but also helps you "accurately," allowing you to remain calm and clear-headed amidst market sentiment fluctuations.
Disclaimer: The above content is for informational sharing only and does not constitute any investment advice!