Wall Street Plane after Tariff Truce: Tech leads the rally, but caution remains
On Tuesday, Wall Street resumed the momentum, slamming a sequence of four sessions, after the American president Donald Trump injected new optimism on the markets by announcing a delay in the planned prices of 50% on the European Union until July 9. The move has reduced trade tensions and restored investor confidence, won a large rally through the sectors – led by technology stocks.
Major index performance
The industrial average of Dow Jones jumped 740.58 points (+ 1.8%) to end at 42,343.65.
The S&P 500 increased by 2.1% to 5,921.54.
The composite of the Nasdaq jumped 2.5% to 19,199.16, fueled by strong gains of technology, in particular Tesla, which joined 7% after Elon Musk confirmed a direct involvement renewed in the management of its companies.
Political momentum raises feeling Trump said on Sunday that the tariff delay had followed a “constructive call” with the president of the European Commission Ursula von der Leyen, stressing the improvement of relations with Brussels. Kevin Hassett, director of the National Economic Council, added that new trade agreements could be concluded this week, strengthening the hope of alleviating world commercial conflicts.
Economic data provide additional support US consumer confidence data better than expected for the United States can also increase feeling, increasing continuous force expectations in consumer spending and business profits.
Key stock movers
Tesla (tsla): In addition to 7% after Elon Musk reported that he would refocus directly on operations management.
Technology giants Like Nvidia, AMD, Apple and Microsoft have displayed strong gains.
US Steel: Has increased by 2% in the reports of a potential acquisition of $ 55 / share per Japanese Steel in Japan.
Dan Ryan, Director Partner at Sincerus Advisory, noted:
“The long weekend acted as a reset button. Commercial tension is fading quickly and new negotiation channels have opened. ”
Profits reinforce optimism According to FactstSet, more than 78% of S&P 500 companies have exceeded analysts' estimates during the first quarter profits season, reflecting the performance of stronger than expected companies and improving market attraction despite larger risks.
Potential -contrary wind warnings
Barclays Warned by a potential slowdown in consumption expenditure in the midst of economic uncertainty, which suggests that the effects of fiscal policy would not be felt before next year.
Citi's Scott Chronert stressed that the increase in interest rates could weigh on stock assessments thanks to a higher reduction in future cash flows.
Controversy around “Trump media” Trump Media & Technology Group's shares fell 10% after the company announced a Bitcoin investment of $ 2.5 billion. CEO Devin Nunes said:
“Bitcoin is a sovereign tool for financial freedom, and we will keep it as a strategic asset on our balance sheet.”
Conclusion The American markets have strongly rebounded as business tensions relaxed, but investors remain attentive to the signals of monetary policy to come and to economic data. Although business benefits and pricing breaks have reinforced optimism, warnings of consumer fatigue and global instability are factors that cannot be ignored.
(This article was WriTten by the author with the help of language generation tools to support structure and clarity. All ideas and opinions are entirely specific authors.)
