Stock Market Rallies, Regaining 3%

This might be based on hopes about countries negotiating away their own tariffs to get America to reduce its own. Seventy countries contacted the Trump Administration to bargain over the tariffs.

But I doubt they're serious at all about cutting their tariffs.

I also don't think Trump actually wants to cut American tariffs, even in exchange for a reduction in world taiffs.

He talks about re-industrializing the US and bringing the jobs back home. That doesn't happen if the world just lowers all of its tariffs. Trump's preference is a protectionist policy to rebuild American industry. Reducing the world's tariffs doesn't help protect American industry.

So I don't think the seventy foreign countries are serious about reducing their own tariffs, and I also don't think Trump is particularly receptive to reducing American tariffs. He wants the tariffs.

Some people who are pro-free-trade can buy into Trump's tariff policy because they think, or hope, that the endgame is Trump using the leverage of tariffs to get other countries to reduce theirs, thus resulting in a more free trade world.

But I don't think Trump wants a more free trade world. I think he believes tariffs are a good in and of themselves, and not just a bargaining chip to bring about a global free trade zone.

Whatever the case, the markets are rallying after yesterday's engineered panic.

Mario Nawfal @MarioNawfal

U.S. STOCKS SURGE AS TRADE DEAL HOPES IGNITE MARKET RALLY

Wall Street roared back this morning, with all 3 major indexes jumping more than 3% on optimism around new trade deals.

The S&P 500 soared 3.2%, the Nasdaq surged 3.6%, and the Dow Jones exploded 3.4%--gaining over 1,300 points at the open.

Investors cheered signs of progress in global trade negotiations, including major moves by the Trump administration to realign foreign trade with U.S. interests.

Mario Nawfal @MarioNawfal

WALL STREET WHIPLASH: TARIFF FALLOUT FUELS HISTORIC VOLUME, FUTURES RALLY

After Trump's surprise tariff rollout, the S&P 500 clocked its third straight loss, briefly dipping into bear territory with the highest trading volume in 18 years--29 billion shares.

Yet Monday night, futures flipped green:

Dow up 444 points, Nasdaq +1%.

A false social media rumor of a tariff pause triggered intraday gains, quickly crushed by a White House denial.

Treasury Secretary Bessent said talks could stretch until June.

Recession fears remain as the 10-year yield tops 4%. Levi's earnings beat forecasts but warned of tariff impact.

The Volatility Index spiked to 60. Market eyes now shift to CPI data later this week.

Source: CNBC

posted by Ace at 12:20 PM

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