What we’re reading (4/23)
“Stocks Rally, Swayed By White House Comments On Fed, Tariffs And Trade” (New York Times). “A stock market surge on Wednesday was again fueled not by concrete evidence of policy changes, but by off-the-cuff comments from President Trump and other officials, as investors latched onto scraps of information about tariffs, trade and other crucial issues that can shift from day to day. Wall Street’s drastic swings this week — a sharp sell-off on Monday, followed by two big daily rallies — highlight how investors are swayed by the latest headlines amid the confusion and uncertainty about the White House’s intentions.”
“Huge Stock Swings Are The New Normal For Frazzled Investors” (Wall Street Journal). “The trade war’s swings—both higher and lower—have left many investors on edge. The S&P 500 has gained or lost at least 1% in seven of the past 10 sessions, and April is poised to be the most-volatile calendar month since the Covid crash in 2020, according to Dow Jones Market Data.”
“Markets Think They Hold All The Cards Over Trump” (Wall Street Journal). “The power of the markets isn’t magical. Asset prices are just many people assessing the prospects for the economy and future returns, and concluding that neither 145% tariffs on China nor Trump interfering in setting interest rates would be good for them. Markets are a live opinion poll of money. In that sense, they matter to Trump. But there is no assurance that he will be ruled by them. Sometimes doing what’s best for the country might be bad for stocks (tax rises) or bad for bonds (tax cuts) or bad for the dollar (rate cuts or a war, for example).”
“China’s ‘Bleeding’ Exporters Have 3 Options. All Of Them Are Bad.” (Barron’s). “Beneath the fluorescent lights of a warehouse in Foshan, a city in southern China, Liu Wenyi watches as workers tape shut boxes of ceramic teapots destined for no one. The buyer in California canceled the order last week, just after new U.S. tariffs pushed the total duty on her products above 150%.”
“Driverless Trucks Are Rolling In Texas, Ushering In New Era” (Axios). “Drivers along a 200-mile stretch of I-45 between Dallas and Houston should get ready for something new: the semi-truck in the next lane might not have anyone in the driver's seat.”
