Truss-tastrophe! Markets Rise on PM Step-Down
Stocks are higher after Liz Truss said she would resign as U.K.'s prime minister following a short but eventful tenure.


U.S. stocks applauded the surprise resignation of Liz Truss as traders bet the exit of the shortest-serving prime minister in British history would restore a measure of calm to the U.K. currency and bond markets.
Truss said on Thursday she would resign as British prime minister, brought down just six weeks into the job by an economic program that shattered investor confidence and enraged much of her Conservative Party.
Speaking outside the door of her Number 10 Downing Street office, Truss accepted that she had lost the faith of her party and said she would step down next week.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The move was an abrupt reversal for Truss, who said on Wednesday she was a "fighter and not a quitter." But the following day she told a mass of journalists gathered in Downing Street that she realized she could no longer deliver on the promises that won her the Conservative leadership.
"I have therefore spoken to His Majesty the King to notify him that I am resigning as leader of the Conservative Party," said Truss, who was supported only by her husband with her aides and loyal ministers noticeably absent.
A new leadership election will be completed by next Friday, Oct. 28. Those expected to run include former finance minister Rishi Sunak and Penny Mordaunt, a former defense minister.
Truss's resignation ends a brief but inglorious chapter for the U.K. Her so-called "mini-budget" created chaos in the market for British government debt and sent the pound on a roller-coaster ride.
Financial experts were unsparing in their criticism of Truss's short but eventful tenure, and what are expected to be deleterious and long-lasting consequences.
"First her policies went up in flames, then her brief career as Prime Minister," noted Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown. "The great political gamble of Liz Truss has spectacularly backfired but not before wreaking significant damage to the U.K. economy. It will take considerable time before the risk premium attached to U.K. assets fades away, following the financial nervous breakdown which followed the mini-budget."
British government bond prices rose on Thursday, although their gains were tempered by the prospect of another week of political upheaval as the Conservative Party chooses a successor to Truss.
How Stocks Are Reacting
U.S stock futures started in the red Thursday as news of Truss's resignation reverberated through global markets, and the major benchmarks did gap down at the open.
But markets on the American side of the Atlantic soon bounced back, with the major U.S. benchmarks rising sharply within the first hour of trading. The blue-chip Dow Jones Industrial Average added more than 380 points at one point early in the session. The broader S&P 500 and tech-heavy Nasdaq Composite tacked on similarly smart gains.
Strength in mega-cap tech stocks such as Apple (AAPL) and Microsoft (MSFT) helped power markets higher, as did gains in Amazon.com (AMZN). Dow stock International Business Machines (IBM) rallied after the company reported better-than-expected quarterly results and raised its full-year outlook.
It's also the case that an encouraging start to what is forecast to be the worst earnings season since the height of COVID-19 lockdowns of 2020 has given U.S. equities a tailwind in recent sessions.
The market is also benefiting from technical strength, analysts say, although few are calling for a definitive end to our current bear market anytime soon.
The major indexes' initial reaction to the end of the Truss premiership appears to be one of good riddance to bad rubbish. But a state of bedlam persists in Britain. Instability at the top of the world's sixth largest economy will surely send out more shockwaves in the days, weeks and even months ahead.
Reuters reporters Kate Holton, Farouq Suleiman, William James, Sachin Ravikumar, Kylie MacLellan, Elizabeth Piper, Andrew MacAskill, Muvija M and Andy Bruce contributed to this article.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Dan Burrows is Kiplinger's senior investing writer, having joined the publication full time in 2016.
A long-time financial journalist, Dan is a veteran of MarketWatch, CBS MoneyWatch, SmartMoney, InvestorPlace, DailyFinance and other tier 1 national publications. He has written for The Wall Street Journal, Bloomberg and Consumer Reports and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among many other outlets. As a senior writer at AOL's DailyFinance, Dan reported market news from the floor of the New York Stock Exchange.
Once upon a time – before his days as a financial reporter and assistant financial editor at legendary fashion trade paper Women's Wear Daily – Dan worked for Spy magazine, scribbled away at Time Inc. and contributed to Maxim magazine back when lad mags were a thing. He's also written for Esquire magazine's Dubious Achievements Awards.
In his current role at Kiplinger, Dan writes about markets and macroeconomics.
Dan holds a bachelor's degree from Oberlin College and a master's degree from Columbia University.
Disclosure: Dan does not trade individual stocks or securities. He is eternally long the U.S equity market, primarily through tax-advantaged accounts.
-
Prior Authorization Coming to Traditional Medicare Starting in 2026
The Centers for Medicare and Medicaid Services (CMS) will implement prior authorization requirements for certain traditional fee-for-service Medicare services in six states starting next year.
-
The 60-40 Portfolio Rule of Investing: Not Dead Yet?
Adding alternative investments to a balanced portfolio can smooth out returns.
-
AI vs the Stock Market: How Did Alphabet, Nike and Industrial Stocks Perform in June?
AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in June.
-
Stock Market Today: A Historic Quarter Closes on High Notes
"All's well that ends well" is one way to describe the second quarter of 2025, at least from a pure price-action perspective.
-
Stock Market Today: S&P 500, Nasdaq Near New Highs
The S&P 500 hasn't hit a new high since February. It's been since December for the Nasdaq.
-
Stock Market Today: Stocks Struggle to Sustain Gains
Mixed messages from multiple sources continue to make for a messy market for investors, traders and speculators.
-
We Are Peter Lynch: How to Invest in What You Know
Take a look around, go to a free stock market data website, and get to work.
-
Stock Market Today: Stocks Lose Steam After CPI, US-China Trade Deal
Wall Street initially cheered soft inflation data and hopeful tariff news, but momentum stalled in late-day trading.
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears Ebb
Constructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
AI vs the Stock Market: How Did Tech Stocks, Palantir and Albemarle Perform in May?
AI is a new tool to help investors analyze data, but can it beat the stock market? Here's how a chatbot's stock picks fared in May.