Donald Trump's recent comments on buying stocks have spurred a rise in the stock market. Let’s examine what exactly his remarks influenced the markets.
Impact of Trump’s Statements on the Stock Market
On May 8, Trump called on citizens to invest in stocks, assuring that an effective combination of a trade agreement and tax cuts would boost stock markets. His words led to a rise in all three major US stock indices. The Dow Jones increased by 0.62%, the S&P 500 rose by 0.58%, and the Nasdaq jumped up by 1.07%.
Economic Policy and Powell's Criticism
Trump expressed dissatisfaction with Fed Chair Jerome Powell, dubbing him 'Big Late Powell'. During the press conference, Powell confirmed that the federal funds rate remains at 4.25%-4.5% and that the President's comments would not influence the Fed's decisions.
New Trade Framework Between the US and UK
Trump announced a new trade framework between the USA and the UK, covering areas like agriculture, automobiles, and digital services. This deal aims to strengthen trade relations between the two countries post-Brexit.
Trump's call for stock buying and the new US-UK trade framework have supported the prospect of a rising stock market, but many questions remain, especially regarding the political impact on the economy.
