Investors are breathing a bit easier on Monday, with markets rallying in Asia and Europe on hopes for a reprieve on tech tariffs. The optimism seems to contradict President Trump’s own words.
The president has signaled that yet another round of levies are on the way, sowing more confusion among business leaders about what’s on, what’s off — and how to deal with their new reality.
If the tariffs are in fact being watered down, that could erode his bargaining power — not to mention his argument that high-tech imports fall into a special national security category — as he seeks to bring back manufacturing to U.S. shores.
Companies are bracing for new Trump tariffs as soon as this week on the chips and tech components that power phones, computers, and other consumer gadgets.
Nasdaq futures look set to open in the green on Monday, with Apple rallying in premarket trading. But last week’s big loser — the dollar — was selling off again, hitting a six-month low and adding to U.S. importers’ concerns.
Markets are bouncing back, but business leaders are fretting about the ongoing trade tensions. A poll by Chief Executive magazine found that C.E.O. confidence is at its lowest level since spring 2020, the early days of the coronavirus pandemic.
The S.E.C.’s new guidelines force investors into passivity. The institutional investors have only one key action — vote at the A.G.M.s.
Businesses affected by the tariffs, including a small privately held wholesale footwear company, Deer Stags, are facing an existential crisis. They are trying to move production to avoid the tariffs, but it takes time and expense.
Bank earnings will offer fresh clues about the state of American households and businesses’ finances. Bank of America and Citigroup are the next big banks to report. Elsewhere, United Airlines releases results.
The European Central Bank is expected to lower interest rates. On the earnings calendar: UnitedHealth Group, Netflix, and Blackstone.
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