Stocks rebound on Trump comments, Tesla rises after results
|Stocks soar on Bessent and Trump comments
It’s hard to keep up with US government policy at the moment. Scott Bessent struck a softer tone on China last night, and then his boss seemed to signal the beginning of a retreat from the trade war by suggesting tariffs would come down sharply and the US would take a more conciliatory approach. In addition, Trump no longer seems keen on firing Jerome Powell, a dramatic turnaround from Monday, something that had provoked fresh panic among investors.
While the news is welcome, the sheer changeability of the Trump administration makes life impossible for investors. There remains the risk that policy will u-turn once again, and in the face of this the ‘Sell US’ trade seems set to continue. Uncertainty levels remain off the charts, meaning investors will keep looking for places where their money is less at risk from the whims of the White House.
Tesla rises on Musk’s return plans
Had last night’s Tesla numbers come in December at the record high, then the reaction would have been grim. But after a 50% fall in the stock price investors are inclined to take a different view. And with Musk set to make a return, these figures can be set aside on hopes that a more secure hand is on the tiller once again. But the competition from other car makers is getting stiffer all the time, meaning even Musk will have his work cut out in returning Tesla to its previous strong form.
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