Trade Uncertainties Don't Phaze Wall Street, Tech Stocks Soar
Commission still undecided on launching the process.
The ongoing trade issues between the USA and China remain unsettled, but Wall Street is unfazed, with tech stocks leading the charge.
Despite the cloud of uncertainty, Wall Street saw gains on Tuesday, with the tech sector taking the limelight. The Nasdaq Composite has bounced back and is once again in the black for the year. Despite recent tariff announcements from U.S. President Donald Trump, the market remains resilient, although the question lingers - will the U.S. and China reach a final trade agreement? Both nations have accused each other of sabotaging already agreed-upon deals.
In the meantime, the Trump administration has urged its trade partners to present their best proposals within five weeks for trade talks. Market strategist Michael Brown of Pepperstone suggests a high-level call between President Trump and Chinese leader Xi Jinping might be necessary to break the deadlock. According to Brown, such a call could happen this week.
White House press secretary Karoline Leavitt confirmed that the call between the two leaders will happen "very soon," although she did not specify the exact date.
The Dow Jones Index climbed 0.5 percent to 42,520 points. The S&P 500 ended the day 0.6 percent higher, and the Nasdaq Composite surged 0.8 percent. Preliminary data from the NYSE showed 1,916 gainers (compared to 1,271 the previous day) and 853 losers (down from 1,493).
Dismal Economic Outlook
Economic prospects are grim, with the Organisation for Economic Co-operation and Development (OECD) lowering its forecasts for global economic growth due to increased trade barriers and persistent uncertainty. The U.S. is particularly hard hit, and China has reported weak economic data.
Industrial orders in the U.S. dropped more than anticipated in April, and while the number of job openings increased slightly, the overall economic picture remains bleak.
On the bond market, yields showed little change, recovering from initial modest losses. The yield on ten-year U.S. Treasury notes remained steady at 4.46 percent. UBS expects rising prices and falling U.S. yields due to growth risks, but analysts don't anticipate the yield to drop below the 4 percent mark for the ten-year maturity in the near future.
Politics & Stocks: Musk Slams Trump's Bill
Elon Musk, CEO of Tesla, has strongly criticized President Trump's "Big beautiful bill," labeling it a "disgusting abomination."
Gold & Oil Prices
The dollar's strength weighed on the gold price, with the troy ounce falling 0.8 percent to $3,353 after a significant increase the previous day. However, gold remains close to recent multi-week highs, with ongoing trade conflicts driving demand for the safe-haven metal.
Contrastingly, oil prices continued to rise, with notations for Brent and WTI increasing by up to 0.9 percent. Low hopes for a ceasefire in Ukraine and the potential for new Russia sanctions targeting the oil sector contributed to the oil price climb.
Tech Stocks Soar
Shares in the technology sector experienced a surge. Nvidia shares jumped 2.8 percent, and Super Micro Computer gained 4.8 percent. Micron Technology improved by 4.2 percent after the chipmaker announced the first sample of a new AI-focused chip for smartphones.
Walt Disney gained 0.6 percent as the entertainment conglomerate moves to cut costs by laying off hundreds of employees in various departments. Dollar General jumped 15.9 percent after raising its outlook, and MoonLake Immunotherapeutics climbed 18 percent amid takeover talks with Merck & Co.
Source: ntv.de, toh/DJ
- Wall Street
Elon Musk, known for his candid opinions, has criticized U.S. President Donald Trump's "Big beautiful bill" as a "disgusting abomination," revealing a growing dissatisfaction among business leaders and tech giants amidst ongoing trade disputes.
The temporary agreement between China and the U.S. might provide short-term relief for the tech sector, but ongoing tensions remain a threat to long-term stability. The uncertainty surrounding trade dynamics, combined with recent weak economic data, creates a volatile environment for tech stocks on Wall Street. Nevertheless, investors continue to show confidence, purchasing tech stocks at a rapid pace.
The Commission, while investigating the growing discontent among business leaders, may find that finance institutions are eagerly investing in technology-based businesses on Wall Street, such as Nvidia, Super Micro Computer, and Micron Technology. Despite ongoing trade issues, the tech sector remains resilient and continues to soar, exemplified by the surge in shares of these companies.
In light of the ongoing trade disputes and Elon Musk's harsh criticism of President Trump's recent bill, the tech industry is grappling with increased uncertainty, which may impact their long-term stability. However, the finance sector remains optimistic, as evidenced by the rapid purchase of tech stocks on Wall Street. This active investment could potentially place the technology sector in a strong position, regardless of the trade dynamics that may unfold.
