Trump cited the weaker-than-expected inflation report released earlier that day, once again pressuring Federal Reserve Chairman Powell to cut interest rates.
Written by: He Hao
Source: Wall Street Journal
Trump commented on the market again.
On Tuesday, as U.S. stocks rose again in the early session and the S&P 500 index regained its losses for the year, U.S. President Trump stated at the U.S.-Saudi Investment Forum held in Riyadh: A month ago, companies were not satisfied with me, but as the market has risen, their attitudes have changed. The market rising is truly wonderful. It will continue to rise, and rise much higher.
However, after Trump's remarks this time, the US stock market did not experience a rapid intraday surge as it did previously. On the contrary, in the short term, the S&P 500 index's gains narrowed to 0.8%, the Dow fell by 148 points, with the decline widening back to 0.4%, and the Nasdaq rose by less than 290 points, with the increase narrowing to nearly 1.5%.
On the same day, Trump once again pressured Federal Reserve Chairman Powell to cut interest rates, citing the weaker-than-expected inflation report that was released earlier that day. Trump wrote on social media:
Inflation has not decreased, and the prices of gasoline, energy, groceries, and almost all other goods are falling!!!
The Federal Reserve (FED) must cut interest rates like Europe. What does Powell's "too late" mean?
The Federal Reserve's strategy is unfair to the United States, which is ready to thrive. Let it be, it will be a wonderful thing!
Trump also stated that the potential tax bill is expected to boost the U.S. economy.
Previously, Trump called for a "buy stocks" effect
Looking back at the performance of the US stock market over the past few months, Trump's speeches have had a significant impact on the market:
In early April, according to CCTV News, the United States implemented a 10% universal tariff and tariff measures on specific industries such as automobiles, steel, and aluminum, causing the S&P 500 index to drop nearly 19% from its peak in February.
Subsequently, after Trump stated on April 9 that "now is a good time to buy," he announced a pause on some tariffs a few hours later, and U.S. stocks rebounded significantly by over 16% that month.
Trump's "buy signal" did not stop there:
On May 8, Trump reiterated that if the trade deal combined with tax cuts could yield results, "you better go out and buy stocks now."
Following this, on Monday of this week, according to the joint statement from the China-U.S. Geneva economic and trade talks, the United States and China announced a temporary reduction in tariffs. This caused a significant surge in U.S. stocks on Monday, with the S&P 500 index rising by 3.3% and the Nasdaq 100 soaring by 4%. The upward trend in U.S. stocks continued into Tuesday, with the S&P 500 index recovering all its losses for the year during intraday trading.
The significant rebound of the US stock market since early April highlights the bullish effect of Trump's claim on April 9 that there are "major buying opportunities."
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Trump: The market will rise much higher, there is no inflation, and The Federal Reserve (FED) must cut interest rates.
Written by: He Hao
Source: Wall Street Journal
Trump commented on the market again.
On Tuesday, as U.S. stocks rose again in the early session and the S&P 500 index regained its losses for the year, U.S. President Trump stated at the U.S.-Saudi Investment Forum held in Riyadh: A month ago, companies were not satisfied with me, but as the market has risen, their attitudes have changed. The market rising is truly wonderful. It will continue to rise, and rise much higher.
However, after Trump's remarks this time, the US stock market did not experience a rapid intraday surge as it did previously. On the contrary, in the short term, the S&P 500 index's gains narrowed to 0.8%, the Dow fell by 148 points, with the decline widening back to 0.4%, and the Nasdaq rose by less than 290 points, with the increase narrowing to nearly 1.5%.
On the same day, Trump once again pressured Federal Reserve Chairman Powell to cut interest rates, citing the weaker-than-expected inflation report that was released earlier that day. Trump wrote on social media:
Inflation has not decreased, and the prices of gasoline, energy, groceries, and almost all other goods are falling!!!
The Federal Reserve (FED) must cut interest rates like Europe. What does Powell's "too late" mean?
The Federal Reserve's strategy is unfair to the United States, which is ready to thrive. Let it be, it will be a wonderful thing!
Trump also stated that the potential tax bill is expected to boost the U.S. economy.
Previously, Trump called for a "buy stocks" effect
Looking back at the performance of the US stock market over the past few months, Trump's speeches have had a significant impact on the market:
In early April, according to CCTV News, the United States implemented a 10% universal tariff and tariff measures on specific industries such as automobiles, steel, and aluminum, causing the S&P 500 index to drop nearly 19% from its peak in February.
Subsequently, after Trump stated on April 9 that "now is a good time to buy," he announced a pause on some tariffs a few hours later, and U.S. stocks rebounded significantly by over 16% that month.
Trump's "buy signal" did not stop there:
On May 8, Trump reiterated that if the trade deal combined with tax cuts could yield results, "you better go out and buy stocks now."
Following this, on Monday of this week, according to the joint statement from the China-U.S. Geneva economic and trade talks, the United States and China announced a temporary reduction in tariffs. This caused a significant surge in U.S. stocks on Monday, with the S&P 500 index rising by 3.3% and the Nasdaq 100 soaring by 4%. The upward trend in U.S. stocks continued into Tuesday, with the S&P 500 index recovering all its losses for the year during intraday trading.
The significant rebound of the US stock market since early April highlights the bullish effect of Trump's claim on April 9 that there are "major buying opportunities."