Commerce Secretary Howard Lutnick appeared on CNBC to suggest a potential trade deal, aiming to calm market volatility. While he did not specify the country involved, his comments led to a 0.58% rise in the S&P 500 on Tuesday, following a modest improvement on Monday.
Despite the market rise, President Trump’s second term concluded its first 100 days with significant challenges, marking one of the worst starts in nearly a century. His aggressive tariff policies, even towards U.S. allies, have unsettled investors. Although Lutnick’s comments seemed to be part of a broader effort to reassure the market, the S&P had fallen nearly 8% since January, despite initial investor enthusiasm.
Major companies remain wary of the tariff impacts on prices. A report suggested Amazon might display tariff costs on products, a move the company later denied after criticism from the White House. Amazon shares lightly declined by 0.17%.
In positive news, it was reported that Trump might soften automotive tariffs, which could benefit auto manufacturers by preventing compounded tariffs on foreign-made cars and reducing taxes on certain parts. This move could offer relief to the industry, similar to earlier exemptions for phones, computers, and chips. Apple and Ford saw stock gains, while General Motors experienced a slight decline.
Amid the shifting U.S. policies, other nations seek stability. In Canada, former central banker Mark Carney became prime minister, signaling a political rebuff to Trump’s protectionist stance with voters supporting Carney’s criticism of U.S. rhetoric.
This report was sourced from Fortune.com.
