U.S. Stock Market Climbs as Trade Optimism and Crypto Rally Set Stage

The U.S. stock market closed Thursday, May 8, 2025, on a strong note, with the S&P 500 rising 0.6% to 5,663.94—marking its 11th gain in the past 13 sessions. Investors were buoyed by positive developments on the trade front, a roaring cryptocurrency market, and resilient economic indicators. As traders look ahead to Friday’s session, several factors could shape momentum, including upcoming Federal Reserve remarks and U.S.-China trade talks.

Trade Breakthrough and Bitcoin Surge Drive Investor Confidence

A key catalyst behind Thursday’s rally was the newly announced U.S.-U.K. trade agreement. The deal, which aims to cut tariffs and ease trade barriers, significantly boosted market sentiment. The optimism extended to global trade as President Donald Trump’s positive comments about upcoming negotiations with China added further fuel to the rally. Investors are hopeful that even incremental progress on the U.S.-China front could reduce trade tensions that have rattled markets for months.

Meanwhile, Bitcoin crossed the $101,000 threshold for the first time in three months, reflecting a surge in investor appetite for digital assets. This rally in cryptocurrencies has drawn both institutional and retail attention, providing a tailwind to fintech stocks and risk sentiment across the board. For more on this crypto resurgence, readers can explore updates on Investors.com.

What to Watch for in Friday’s Trading Session

Looking ahead, the next trading session on May 9 is packed with events that could sway the market. Multiple Federal Reserve officials—including Governors Lisa Cook and Christopher Waller, along with New York Fed President John Williams—are scheduled to deliver remarks. Their comments will be closely watched for any signals about the future path of monetary policy, especially after the Fed recently decided to hold rates steady.

In addition, market participants will be tracking developments from the much-anticipated U.S.-China trade discussions. Although no major breakthroughs are expected, even small signs of progress could lift equities further. Meanwhile, economic indicators continue to paint a mixed picture. Recent reports showing a decline in jobless claims suggest a robust labor market, providing a firm backdrop for corporate earnings and consumer spending.

However, some analysts caution that the market’s resilience could face challenges if economic fundamentals fail to improve meaningfully. According to MarketWatch, while investor sentiment has been strong, cracks could emerge if corporate earnings or macro data disappoint.