Latest news with #TradeActof1974
Yahoo
2 days ago
- Business
- Yahoo
Investors were looking for relief from tariffs. Instead, they got more uncertainty.
This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here. Happy Friday! Have you ever watched a documentary and wondered, How did they get that footage? Jake Gabbard, a BI video producer, described spending two weeks filming the Army's grueling mountain warfare school in Vermont. (The end result, which shows soldiers being trained on mountaineering, cold-weather skills, and high-elevation tactics, is worth a watch, too.) In today's big story, a federal court's ruling against President Donald Trump's tariffs doesn't mean the markets are in the clear. What's on deck Markets: An exclusive interview with Wall Street's Dr. Doom about his early success as a money manager. Tech: Take a look at how much Walmart has previously spent on Azure cloud services. Business: Airbnb CEO Brian Chesky explains why understanding the differences between founders and managers is key. But first, it's all still a bit unclear.A federal court halting the tariff strategy that has tortured the market this year isn't a silver bullet for investors. Major indexes jumped Thursday morning thanks to the US Court of International Trade ruling that President Donald Trump didn't have the power to impose some of his wide-reaching tariffs. Whiplash ensued less than 24 hours later when an appeals court reinstated the tariffs while it reviewed the administration's arguments. Even if Trump's tariffs are ultimately ruled illegal, the risk of a trade war remains. After Wednesday's initial ruling, experts told BI's Christine Ji that Trump has other options that could further sow chaos in an already wild trading environment. Importantly, the entire episode demonstrates the ongoing uncertainty around an issue that has weighed heavily on the market. The constant threat and subsequent pullback of tariffs have proved a challenge for investors in recent months. Citadel's Ken Griffin went as far as saying you'd have been better off keeping your money on the sidelines, which is not the type of thing people who manage money for a living often suggest. Donald Trump, as always, is another X factor. One immediate solution for continuing his trade agenda could be the Trade Act of 1974. I'm sure you're well-versed on that US legislation, but if you aren't, it allows the president to impose tariffs up to 15% for 150 days. If Trump continues his tariff fight in the courts, that'll further complicate trade negotiations. Will a trading partner take the president's threat of tariffs seriously if he might not even have the authority to implement them? Stephanie Roth, chief economist at Wolfe Research, also highlighted to Christine the recently popular TACO trade — Trump Always Chickens Out — as another variable. The notion that he won't commit to harder tariffs, along with the court ruling, could push Trump to double down on his agenda. "There's a possibility he attempts to do some sort of surprise," Roth told Christine. 1. Wall Street's Dr. Doom takes on money management. Bearish economist Nouriel Roubini launched America Atlas Fund in November. Since its inception, the fund is up 4%, outperforming the S&P 500. Here's how it resists volatility. 2. Goldman Sachs is on defense as it faces "disruptive policy" shifts. Amid President Trump's trade war and policies, Goldman President and COO John Waldron said the bank is tamping down risk. For him, tariffs are just one piece of the puzzle, though. 3. What top Tesla investors want from Elon Musk. Now that Musk is leaving Washington, a group of the EV maker's investors drafted a list of requests for the tech billionaire. Items include a 40-hour-per-week commitment to the company and a CEO succession plan. 1. Cleaning up "The Everything Store." A document revealed Amazon's plan — discreetly called the "Bend the Curve" program — to purge at least 24 billion unique product listings from its marketplace. Axing underperforming items can save the company millions in server costs. 2. Microsoft and Walmart are cozier than previously thought. Last week, Microsoft's AI security head accidentally leaked details about its partnership with Walmart. Then, a separate document viewed by BI shows Walmart has spent about $580 million on Microsoft Azure's cloud services between June 2023 and May 2024, which could make it one of Microsoft's biggest cloud customers. 3. One of Nvidia's most important numbers doesn't have a $ attached. Token growth lets the chip giant know how much people are actually using AI and, therefore, its chips. It was a big propeller of Nvidia's Q1 earnings beat, but it's also pretty tricky to track. 1. Mark Zuckerberg and Palmer Luckey are cool now. The foes-turned-friends are teaming up for a US military project, building extended reality gear for soldiers. The Meta-Anduril system, Eagle Eye, will use AI and sensors in headsets and other wearables to enhance vision, Luckey said. 2. How is a business like a baby? Founders are like parents, Airbnb CEO Brian Chesky said on a recent podcast appearance. Chesky said founders have the authority to make big changes and know their metaphorical business baby better than anyone. They also run into two big challenges. 3. The Great Flattening isn't confined to Big Tech. As companies face recession fears and tariff uncertainty, middle managers are at risk. Amazon and Google already announced plans to cut thousands of workers, and now retailers like Walmart are aiming to "remove layers and complexity." Costco is taking a page from Sam's Club's playbook to speed up checkout at warehouses. Tiger Global, more than two years removed from its 56% loss in 2022, walks investors through what's changed — and compares the firm to Rory McIlroy. Starbucks is scaling back one of its popular point perks. Reid Hoffman says AI can't be your friend — and pretending it can is harmful. The taboo colon cancer symptom millennials are afraid to tell their doctors about. At Diddy trial, his consensual-sex defense is undercut by a personal assistant's wrenching rape testimony. Elon Musk's right-hand man is leaving DOGE, too. President Trump delivers remarks at US Steel Corporation Irvin Works. US Commerce Department releases Advance Economic Indicators Report. The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago. 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Yahoo
2 days ago
- Business
- Yahoo
US stocks end near flat but end month with big gains. Trump reescalates China tariff war
U.S. stocks closed little changed, brushing off cooler-than-expected inflation data to focus on a reescalation of tariff wars. President Donald Trump accused China of violating a tariff pause agreed to earlier this month in Switzerland. "China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" he wrote in a social media post. The administration is planning to broaden restrictions on China's tech sector, Bloomberg reported, citing sources. It said officials are drafting regulations that would impose U.S. government licensing requirements on transactions with companies that are majority-owned by already-sanctioned firms. The blue-chip Dow added 0.13%, or 54.34 points, to 42,270.07; the broad S&P 500 lost 0.01%, or 0.48 point, to 5,911.69; and tech-laden Nasdaq shed 0.32%, or 62.11 points, to 19,113.77. The benchmark 10-year Treasury yield slid to 4.4%. Earlier, Treasury Secretary Bessent said in a Fox News interview that U.S.-China trade talks 'are a bit stalled." Investors had hoped a real trade deal, not just a pause, would emerge with China after surprisingly productive talks in Switzerland earlier in the month. Trump's tough talk comes on the heels of court battles over his aggressive tariff plan. A federal court halted his tariffs, saying the president overreached in using an old law on the books to enact his levies. The administration appealed and the appeals court let the tariffs stand for now as the case works its way through the appeals process. Some say the case could end up decided by the Supreme Court. In the meantime, Trump is already looking at ways to implement tariffs while the case makes its way through the appeals process, the Wall Street Journal said. The administration is considering using a provision of the Trade Act of 1974 to implement tariffs of up to 15% for 150 days, it said. "Given Trump's public ire against previous court rulings and the press questions on May 28 around the 'TACO' narrative emerging in the media (Trump Always Chickens Out), we would not be surprised to see a meaningful tariff escalation/response from the White House sooner rather than later," wrote Chris Krueger at TD Cowen in a note after the court rulings. Despite some weakness on the final trading day in May, the S&P 500 and Nasdaq each had their best month since November 2023. The Dow saw its biggest monthly gain since January. All three indexes also were higher on the week. The Federal Reserve's preferred inflation gauge, the annual personal consumption expenditures price index (PCE), rose 2.1% in April, a touch lower than the Dow Jones mean forecast of 2.2%. The core rate, excluding the volatile food and energy sectors, rose 2.5%, also less than predictions for 2.6%. The report also showed consumer spending slowed, as expected, but personal income jumped 0.8% on the month, ahead of forecasts for 0.3%. "The key figure is the increase in income, which was unusually strong," said Robert Frick, corporate economist with Navy Federal Credit Union. "Spending follows income, so that points to the expansion continuing at a solid clip." The University of Michigan consumer survey was a little better than expected but flat from April at 52.2 and still at the lowest level since July 2022. "Consumer and business confidence has cratered, unsurprisingly," wrote James Smith, developed markets economist at Dutch bank ING, in a note. "But the hawks over at the central banks – both in the U.S. and out – would argue that people don't always do what they say. The 'hard data' – the official numbers on everything from spending to hiring – currently isn't looking so bad." Gap sees second-quarter revenues below Street forecasts. Shares plunged 20%. Discount bulk retailer Costco's quarterly results topped expectations. Shares were up 3%. Regeneron shares dropped 19% after the company's experimental drug for patients with a type of lung condition commonly called "smoker's lung" failed a late-stage trial, although it succeeded in another. Dell's sales in the first three months topped analysts' forecasts and raised its full-year guidance. Shares fell 2%. Marvell Technology swung to a profit, fueled by strong demand for artificial intelligence. Shares shed 5.5%. American Eagle Outfitters swung to a loss in the first three months. Shares fell about 2%. Zscaler reported higher third-quarter revenue and slightly increased its full-year sales guidance. Shares added almost 10% Ulta boosted its full-year outlook and posted higher-than-expected first-quarter sales. Shares gained nearly 12%. UiPath raised its annual sales outlook after posting higher quarterly revenue, boosted by strong renewals from public-sector customers. Shares of the automation software company rose almost 3%. Trump Media & Technology Group raised around $1.44 billion from selling stock at $25.72 per share and raised about $1 billion in convertible bonds, to buy Bitcoin for its treasury. Shares of Trump Media rose about 2.5%. Bitcoin was last down 1.01% at $104,590.30. This story was updated to add new information. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: US stocks close near unchanged amid new tariff escalations with China Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Investors were looking for relief from tariffs. Instead, they got more uncertainty.
This post originally appeared in the Business Insider Today newsletter. You can sign up for Business Insider's daily newsletter here. Happy Friday! Have you ever watched a documentary and wondered, How did they get that footage? Jake Gabbard, a BI video producer, described spending two weeks filming the Army's grueling mountain warfare school in Vermont. (The end result, which shows soldiers being trained on mountaineering, cold-weather skills, and high-elevation tactics, is worth a watch, too.) In today's big story, a federal court's ruling against President Donald Trump's tariffs doesn't mean the markets are in the clear. What's on deck Markets: An exclusive interview with Wall Street's Dr. Doom about his early success as a money manager. Tech: Take a look at how much Walmart has previously spent on Azure cloud services. Business: Airbnb CEO Brian Chesky explains why understanding the differences between founders and managers is key. But first, it's all still a bit unclear.A federal court halting the tariff strategy that has tortured the market this year isn't a silver bullet for investors. Major indexes jumped Thursday morning thanks to the US Court of International Trade ruling that President Donald Trump didn't have the power to impose some of his wide-reaching tariffs. Whiplash ensued less than 24 hours later when an appeals court reinstated the tariffs while it reviewed the administration's arguments. Even if Trump's tariffs are ultimately ruled illegal, the risk of a trade war remains. After Wednesday's initial ruling, experts told BI's Christine Ji that Trump has other options that could further sow chaos in an already wild trading environment. Importantly, the entire episode demonstrates the ongoing uncertainty around an issue that has weighed heavily on the market. The constant threat and subsequent pullback of tariffs have proved a challenge for investors in recent months. Citadel's Ken Griffin went as far as saying you'd have been better off keeping your money on the sidelines, which is not the type of thing people who manage money for a living often suggest. Donald Trump, as always, is another X factor. One immediate solution for continuing his trade agenda could be the Trade Act of 1974. I'm sure you're well-versed on that US legislation, but if you aren't, it allows the president to impose tariffs up to 15% for 150 days. If Trump continues his tariff fight in the courts, that'll further complicate trade negotiations. Will a trading partner take the president's threat of tariffs seriously if he might not even have the authority to implement them? Stephanie Roth, chief economist at Wolfe Research, also highlighted to Christine the recently popular TACO trade — Trump Always Chickens Out — as another variable. The notion that he won't commit to harder tariffs, along with the court ruling, could push Trump to double down on his agenda. "There's a possibility he attempts to do some sort of surprise," Roth told Christine. 1. Wall Street's Dr. Doom takes on money management. Bearish economist Nouriel Roubini launched America Atlas Fund in November. Since its inception, the fund is up 4%, outperforming the S&P 500. Here's how it resists volatility. 2. Goldman Sachs is on defense as it faces "disruptive policy" shifts. Amid President Trump's trade war and policies, Goldman President and COO John Waldron said the bank is tamping down risk. For him, tariffs are just one piece of the puzzle, though. 3. What top Tesla investors want from Elon Musk. Now that Musk is leaving Washington, a group of the EV maker's investors drafted a list of requests for the tech billionaire. Items include a 40-hour-per-week commitment to the company and a CEO succession plan. 1. Cleaning up "The Everything Store." A document revealed Amazon's plan — discreetly called the "Bend the Curve" program — to purge at least 24 billion unique product listings from its marketplace. Axing underperforming items can save the company millions in server costs. 2. Microsoft and Walmart are cozier than previously thought. Last week, Microsoft's AI security head accidentally leaked details about its partnership with Walmart. Then, a separate document viewed by BI shows Walmart has spent about $580 million on Microsoft Azure's cloud services between June 2023 and May 2024, which could make it one of Microsoft's biggest cloud customers. 3. One of Nvidia's most important numbers doesn't have a $ attached. Token growth lets the chip giant know how much people are actually using AI and, therefore, its chips. It was a big propeller of Nvidia's Q1 earnings beat, but it's also pretty tricky to track. 1. Mark Zuckerberg and Palmer Luckey are cool now. The foes-turned-friends are teaming up for a US military project, building extended reality gear for soldiers. The Meta-Anduril system, Eagle Eye, will use AI and sensors in headsets and other wearables to enhance vision, Luckey said. 2. How is a business like a baby? Founders are like parents, Airbnb CEO Brian Chesky said on a recent podcast appearance. Chesky said founders have the authority to make big changes and know their metaphorical business baby better than anyone. They also run into two big challenges. 3. The Great Flattening isn't confined to Big Tech. As companies face recession fears and tariff uncertainty, middle managers are at risk. Amazon and Google already announced plans to cut thousands of workers, and now retailers like Walmart are aiming to "remove layers and complexity." Costco is taking a page from Sam's Club's playbook to speed up checkout at warehouses. Tiger Global, more than two years removed from its 56% loss in 2022, walks investors through what's changed — and compares the firm to Rory McIlroy. Starbucks is scaling back one of its popular point perks. Reid Hoffman says AI can't be your friend — and pretending it can is harmful. The taboo colon cancer symptom millennials are afraid to tell their doctors about. At Diddy trial, his consensual-sex defense is undercut by a personal assistant's wrenching rape testimony. Elon Musk's right-hand man is leaving DOGE, too. President Trump delivers remarks at US Steel Corporation Irvin Works. US Commerce Department releases Advance Economic Indicators Report. The Business Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
2 days ago
- Business
- CNBC
Investor positioning in defensive stocks falls to lowest level since 2000, BofA says
The markets are still in the thick of trade policy turmoil and economic uncertainty, and yet investors are nowhere near ready to play defense. In fact, investor positioning in defensive stocks — measured by the percentage of healthcare stocks, consumer staples and utilities in the S & P 500— has fallen to the lowest level since 2000, according to data from Bank of America. That offensive stance has stood firm even as the stock market continues to be whipsawed by President Donald Trump's tariff policies that change on a dime, while worries deepen about the vigor of the economy. Trump said Friday that China violated its preliminary trade agreement, in turn triggering another volatile session on Wall Street. .SPX YTD mountain S & P 500 in 2025 The Trump administration also considered using a provision of the Trade Act of 1974 to implement tariffs of up to 15% for 150 days, according to the Wall Street Journal. Bank of America strategists led by Michael Hartnett have been advising clients to sell into rallies, saying the macroeconomic environment remains risky. The bank is recommending a stepped up allocation to bonds, international equities and gold in 2025. Still, stocks are on the verge of closing out May with strong gains following a tumultuous April. The S & P 500 has added nearly 6% this month, while the Nasdaq has surged 9.2%. The 30-stock Dow Jones Industrial Average has gained 3.6% on the month.
Yahoo
2 days ago
- Business
- Yahoo
Scott Bessent says U.S.-China trade negotiations are 'stalled'
U.S. Treasury Secretary Scott Bessent said Thursday that trade negotiations with China are 'a bit stalled,' just weeks after both sides declared a 90-day tariff truce. In an interview with Fox News (FOXA), Bessent suggested that actual progress may hinge on a direct call between President Trump and Chinese President Xi Jinping. 'Given the magnitude of the talks… this is going to require both leaders to weigh in,' he said. The comments underscore how quickly optimism over the May breakthrough has faded and the ongoing policy whiplash making it difficult for investors and business leaders to tell which way is up. The temporary truce had seen both countries drastically slash reciprocal tariffs — cutting U.S. rates on Chinese goods from 145% to 30%, and Chinese tariffs from 125% to 10% — in what Bessent described as a shared effort to avoid 'de facto economic decoupling.' To recap: On Wednesday of this week, the U.S. Court of International Trade ruled that many of Trump's tariffs were unlawfully enacted, threatening to roll back large portions of his trade agenda, including aspects of his China-specific initiatives. Then, on Thursday, a federal appeals court issued a temporary stay, allowing the tariffs to remain in place while it reviews the case. The administration now has until June 9 to make its arguments, with the White House vowing to escalate the battle all the way to the Supreme Court if needed. Trump officials have also hinted at fallback plans, including using Section 122 of the Trade Act of 1974 to impose temporary tariffs of up to 15%. Despite interest from other trade partners like India and the EU to move forward on sector-specific deals, the U.S.-China dialogue necessarily remains the centerpiece of any breakthrough. That's no surprise, given that the U.S. and China are the world's two largest economies and each other's biggest trading partners. Their negotiations are uniquely consequential for global supply chains, inflation, and investor confidence. For now, those negotiations are once again at a stand still. The tariff pause remain in effect, but investors may once again be asking whether this latest 'reset' hints at yet another behind-the-scenes setback. For businesses, it's more whiplash, too. The sudden tariff pause, their near-immediate reinstatement, the legal uncertainty, and now a stalled negotiation process have left many unsure whether to restock, retreat, or hold the line. According to data released just yesterday by the Conference Board, a whopping 83% of CEOs now expect a recession within the next 12 to 18 months. 'CEO Confidence collapsed in Q2 2025 after surging in Q1,' said Stephanie Guichard, a senior economist at The Conference Board. 'All components of the Measure weakened into pessimism territory. CEOs' views about current economic conditions led the plunge, registering the largest quarter-on-quarter decline in almost 50 years.' For the latest news, Facebook, Twitter and Instagram.
