US STOCKS-Wall St edges up as imminent US-Britain trade deal stokes optimism

By Purvi Agarwal and Johann M Cherian

May 8 (Reuters) - Wall Street inched higher on Thursday as investors awaited the announcement of a trade deal between the United States and Britain, which is set to be the first such agreement the U.S. 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 Britain and the UK is likely to secure a reduction in U.S. 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 U.S. 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 DNUT.O shares sank up to 20.6% after the restaurant chain became the latest to withdraw its full-year forecast.

At 10:12 a.m. ET the Dow Jones Industrial Average .DJI rose 66.85 points, or 0.16%, to 41,180.82, the S&P 500 .SPX gained 10.78 points, or 0.19%, to 5,642.06, and the Nasdaq Composite .IXIC gained 67.15 points, or 0.38%, to 17,805.95.

Energy stocks .SPNY led gains among the S&P 500's 11 sectors with a 1.3% 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 <.SOX> gained 0.6%, 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 U.S. 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 now see 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 labor market continued to chug along.

Among others, U.S.-listed shares of Arm ARM.O plunged 6.7% after the chipmaker forecast first-quarter revenue and profit below Wall Street estimates.

Tapestry TPR.N added 5% after the luxury group raised its annual forecasts, while Fortinet FTNT.O slumped 12% after the cybersecurity firm's second-quarter revenue forecast came in below estimates.

Warner Bros. Discovery WBD.O gained 5.8% 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.