This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
Americans’ perceptions of how U.S. President Donald Trump is handling the economy have drastically changed, according to an All-America Economic Survey: for the first time since he took office, more people disapprove of the president’s economic policies than support them.
Elon Musk, the CEO of Tesla, has contributed significantly to the Trump administration; however, his own reputation and that of his company have also suffered. According to the same survey, almost 47% of Americans had a bad opinion of Tesla, compared to just 10% for General Motors. Approximately 50% of those surveyed have a negative opinion of Musk.
On the other hand, markets are flexible and frequently respond to any favorable developments nearly immediately. Even though the electric vehicle company’s first-quarter earnings fell short of forecasts, Trump’s denial that he wants to remove Federal Reserve Chair Jerome Powell from office and Musk’s clarification that he will be spending less time in Washington, D.C., were sufficient to push stock indexes and Tesla shares higher on Tuesday.
Even though Cassio in Othello by Shakespeare refers to reputation as “the immortal part” of himself, the market tends to be a more forgiving indicator of character.
What To Note Today
Trump Reaffirms Support for Fed Chair Powell
President Trump clarified he has no plans to dismiss Federal Reserve Chair Jerome Powell, though he urged Powell to act more decisively in lowering interest rates. The comments helped alleviate market concerns about political interference at the Fed.
Hope for U.S.-China Trade Breakthrough
Treasury Secretary Scott Bessent hinted at an upcoming de-escalation in the U.S.-China trade war, noting neither country finds the current tension sustainable. His remarks suggested negotiations may progress, though challenges remain.
Markets Surge on Optimism
U.S. stocks rallied following upbeat signals from Trump and Bessent. The S&P 500 rose 2.51%, Dow gained 2.66%, and Nasdaq added 2.71%. Asia-Pacific indexes followed suit, despite the IMF cutting Asia’s 2025 growth outlook due to trade uncertainty.
Tesla Misses Earnings Expectations
Tesla’s Q1 earnings fell short, with revenue dropping 9% and net income plunging 71% year-over-year. Despite the miss, Tesla eyes India for expansion, according to CFO Vaibhav Tanej during the earnings call.
Musk to Reduce Government Role
Tesla shares jumped over 5% in after-hours trading, despite weak earnings. CEO Elon Musk announced that he will reduce his responsibilities with the Department of Government Efficiency, effective May, which is expected to boost investor confidence.
Investors Flee to Safe-Haven Currency
As the U.S. dollar weakens and market volatility rises, investors are turning to a reliable safe-haven currency. One ETF linked to it surged 8% in April alone, with experts calling it a top choice for stability in 2025.
Chinese Stock Delisting Concerns Grow
U.S. regulatory pressure has revived fears of Chinese firms being delisted from American exchanges. Treasury Secretary Bessent’s “everything is on the table” remark, alongside SEC leadership changes, has rattled Wall Street and threatened major capital outflows.
