The stock market's rollercoaster ride continues, with President Trump's latest move casting a shadow over the AI-supported market rally. But here's where it gets controversial: Trump's threat to embargo cooking oil in response to China's soybean purchases halt could have far-reaching consequences. While the S&P 500 initially tumbled, the market's resilience was showcased by its positive trade for most of the day. However, Trump's 'retaliatory' remarks sent the S&P 500 down 0.2% as investors took his words seriously.
Amidst this volatility, a glimmer of hope emerged from the Federal Reserve. Jerome Powell suggested the central bank might pause its monetary policy tightening, potentially maintaining liquidity in the economy. This, coupled with positive earnings reports from major banks like JPMorgan Chase, Citi, and Goldman Sachs, indicates that the fundamentals remain sound.
Oracle's strategic shift towards AMD's artificial intelligence chips, away from Nvidia's GPUs, is another intriguing development. This move could diversify concentration risk and benefit investors banking on AI's market-boosting potential.
The question remains: Will Trump's tariffs derail the AI-supported market, or will the 'Magnificent Seven' kingdom prevail? As the market navigates these turbulent waters, investors and analysts alike are left pondering the impact of Trump's actions on the broader economic landscape.
In other news, the Middle East peace process is a delicate matter. While Trump's role in ending the Israel-Hamas war is widely acknowledged, the path to long-lasting peace is fraught with challenges. Analysts highlight the lack of detail in Trump's 20-point plan, leaving room for interpretation and potential disagreements on crucial issues like demilitarization and the two-state solution.
