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Bessent: China trade standoff unsustainable
The stock market experienced a significant increase on Wednesday, buoyed by indications of a possible easing of the trade tensions with China. This uptick in investor sentiment also followed President Trump’s assurance that he would not seek to remove Federal Reserve Chair Jerome Powell.
In early trading, the Dow Jones Industrial Average surged by over 1,000 points, representing a 2.6% rise, continuing its upward trend from the previous day. Meanwhile, the S&P 500 climbed by 168 points, or 3.2%, and the Nasdaq Composite gained 664 points, an impressive 4.1% increase.
Tim Waterer, chief market analyst at KCM Trade, remarked that the stock market is likely to continue reacting to President Trump’s latest decisions regarding tariffs and trade policies.
Global markets also responded positively, with stocks across Asia and Europe rising in reaction to the potential for tariff alleviation. This optimism comes in the wake of a disheartening report from the International Monetary Fund, which warned of a slowdown in the global economy. The IMF adjusted its growth forecast for this year to 2.8%, down from 3.3% projected in January. The U.S. economy is also anticipated to retract by a full percentage point compared to last year, arriving at a growth forecast of 1.8%.
Tesla Sales and Profits Decline
In another significant development, Tesla’s stock, which has been experiencing a downtrend since December, gained over 4% on Wednesday. This move followed CEO Elon Musk’s announcement during a recent earnings call, where he indicated he would reduce his commitments at the Department of Government Efficiency, informally known as DOGE, within the Trump administration.
Despite this temporary boost, Tesla’s latest earnings report revealed a notable decline in both sales and profits for the first quarter.
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