By Jamie McGEEVER Orlando, Florida, – Handing, which makes sense of the powers that world markets by Jamie McGEVER, Markets columnist, there was a lot of meat -like news for investors to get their teeth in – US President Donald Trump and Chinese Prime Minister XI Jinping’s long -awaited telephone call, a lead of European Market data. But the biggest market mover of all? The public ‘bromance’ breaks between Trump and Tesla CEO Elon Musk. In my column today, I look at Wall Street’s remarkable recovery of the depths of the NA-‘- Liberation day ‘of despair. The windwinds did not go away, but the ‘hopium’ rally could still have room to run. More below, but first, a summary of the main market moves. If you have more time to read, here are some articles that I recommend to help you make sense of what happened in markets today. 1. Trump is threatening Musk’s government trading, as Feud explodes over the tax solution 2. US stocks heal from tariff pain but trading news to keep markets. * Tesla shares dropped 14% after Trump knocked out at Musk and escalated a public splash between the two. Tesla shares are now lower by 33%. * The Nasdaq slides 0.8% and the S&P 500 drops 0.5%. * The dollar hits a 7 -week low on an index base. It is now a mustache to take out the low and plumbers of April who have not been seen in three years. * Sterling rises more than $ 1.36 for the first time since February 2022. * Silver hits a 13-year high of $ 36/oz, and Platinum jumps around 5% to a peak of 3 years of $ 1.145/oz. Trump-Musk Feud is sinking stocks, so the Trump-XI call to defuse trading tensions has finally taken place. The cynical view would be that it had nothing but an agreement to keep talking, suggesting that China is firmly enforced in another important climb. The more optimistic actions, which investors initially adopted, is that the discussions were constructive and cordial, according to the tone of Trump’s social media post and the fact that the two invited each other to visit. But it is quite thin Gruru, and it was not enough to support Wall Street’s initial profits. After beating a record high for a second day, the MSCI All Country Index ended the session apartment. The investor sentiment was obtained by the latest figures of Weekly Weekless claims, the second warning of the job market in 24 hours after Wednesday’s ADP employment report. If these trends are reflected on Friday in the payroll of the non -substitute, the markets may be a rocky ride. Some of the US economic glance was counteracted by the US trade deficit that narrowed in the fastest rate in April, thanks to a collapse in the import as the leading purchase of goods from overseas before rates. This is good for GDP’s growth in the second quarter, and the estimate of the GDPNOW model of Atlanta Fed for growth in the second quarter has been reviewed to an annual 3.8%. However, like the first-quarter GDP sub-draw, the expected rebound in Q2 is completely driven by deformations before the tariff in the trading data. Meanwhile, the European Central Bank has reduced interest rates by a quarter to 2.00%for the eighth time since June last year. President Christine Lagarde indicated a break in the relief cycle and told reporters the bank is currently in a ‘good position’ on monetary policy. But more cuts will probably come just a little later this year than many economists expected. Rates traders still see 50 BPS of relief this year, with 25 BPS cuts in September and December. Finally, but by no means, the ‘bromance’ broke out between the world’s most powerful man and his richest to a fierce public struggle, as Trump threatened to ward off the government contracts with Musk owned companies. The 14% slump in Tesla shares dragged Wall Street into the red and cast a shadow over the global markets in the final trading day of the week. Wall Street’s ‘Hopium’ has not yet been exhausted, and the recent resilience of US supplies is striking, with Wall Street advancing through numerous windwinds to wipe out all its rates fueled losses and move to the positive area for the year. And although these winds have not disappeared yet, the rally can still have a little juice in it. Since the low of April 7 after US President Donald Trump’s ‘Liberation Day’ tareebacle, the S&P 500 and Nasdaq are up 23% and 32% respectively. ‘Big Tech’ took the lead, with the Roundhill ‘Magnificent Seven’ ETF achieving more than 35%. On the face of it, it is striking, as many of the concerns that caused the accident – increased US import tariffs, tensions between the world’s two largest economies, and chaotic and unorthodox policies from Washington – remain today. Especially equity bulls are essentially bet that many things will go right in the coming months: The Federal Reserve will lower the rates; No economic downturn; Inflation will not rise despite the rates; US technical companies will continue to produce strong results; Fiscal concern in Washington will be moderate; And perhaps most importantly, Trump will continue to use his most aggressive tariff threats – or to use the acronym de Jour, investors assume that the ‘Taco’ trade will apply. These are many stars in line. Some of the biggest names in finance are skeptical, especially with regard to US fiscal prospects. The founder of Bridgewater Ray Dalio and Jamie Dimon, CEO of JPMorgan, both, both false in the prolonged deficit, this week repeated their warnings that the US debt is unsustainable. But these calls have fallen on deaf ears, or stock investors simply think that any fiscal fallout will take years to realize. On the one hand, investors-especially the retail crowds who believe they drive this rally much optimistic. But looking at another way, US investors may not ignore the underlying risks of today, but simply see them less apocalyptic than they did a few months ago. The overwhelming negative sentiment of earlier this year paved the way for the recent setback. The sentiment among institutional investors has reached extreme levels of clumsiness in the aftermath of ‘Liberation Day’, and the fear of the recession has also barked to historically high levels, Bank of America’s April fund manager showed up. Meanwhile, May’s survey showed that fund managers in two years have the largest underweight position in US equities. If sentiment and positioning are so stretched, it does not take much to return prices in the opposite direction. If the latest American Association of Individual Investor Centment Survey is any guide, the setback in stocks still has room to drive. Pessimism on the short -term prospects for US stocks rose to an “exceptionally high” 41.9% last week, above the historic average of 31.0% for the 26th time in 28 weeks. As HSBC’s multi-asset strategy team noted this week, it is precisely because these sentiment and positioning indicators are “thoroughly in check” that the market dips are now short-lived. It is also good to remember that although Wall Street wiped out its early losses and valuations after their recent highlights, US stocks are still this year. The S&P 500 has so far only 1.5% higher than 1.5%, while the MSCI All Country World Index jumped by about 6%, which reached a peak on Wednesday. This indicates that in the coming weeks and months there may be better than a better performance for us, but of course relative value statistics can still benefit non-American markets. This does not mean that we should expect capital to start flooding in the US again. International institutional investors can continue to reconsider their allocation to US assets, creating a long -term risk for US stocks. But for the time being, local US investors are picking up the slackness. What can markets move tomorrow? * India Interest Rate Decision * Germany Trading * Germany Industrial Production * Euro Zone Retail Sales * Euro Zone GDP * US Non-Farm Pay States, Unemployment Rate * Canada Service Anniversary expressed are those of the author. It does not reflect the views of Reuters News, which are linked to integrity, independence and freedom of prejudice under the trust principles. This article was generated from an automated news agency feed without edits to text.
Trump-Musk Feud Slams Shares | Einsmark news
