stockmarket

Asian markets fell on Friday as investor concerns surged after a U.S. appeals court reinstated Trump-era tariffs, ending a previous suspension. Trade tensions between Washington and Beijing have reignited, shaking confidence in a near-term deal.

China and Hong Kong Lead the Declines
Markets in Beijing and Hong Kong posted the steepest losses after U.S. Treasury Secretary Scott Bessent revealed that talks with China had recently stalled, dashing hopes for a lasting trade agreement.
As reported by Bloomberg:

🔹 The Shanghai Composite and CSI 300 each dropped by 0.6%

🔹 Hong Kong’s Hang Seng Index plummeted by 1.5%
While Bessent expressed optimism that negotiations could resume, investors were rattled. Additional flashpoints—like the ongoing chip dispute, U.S. export restrictions on Chinese tech firms, and the soon-to-expire 90-day tariff truce—added to the uncertainty.

Regional Markets Follow Wall Street Downward
Other Asian markets followed Wall Street, where U.S. indices ended the session far below intraday highs following the appeals court’s decision. S&P 500 futures dropped by 0.3%, with traders awaiting the Federal Reserve’s favored inflation indicator.
President Trump condemned the earlier ruling that halted the tariffs, stating he’s “confident the Supreme Court will allow [tariffs] to stand.” He also hinted at exploring other legal avenues to reimpose duties—some of which may come into effect as early as July.

Tokyo Slumps on Inflation Surprise
In Japan, the Nikkei 225 fell 1.3%, while the Topix Index slid 0.7% after data showed Tokyo’s consumer prices rose more than expected in May, potentially prompting the Bank of Japan to raise interest rates. Analysts are now considering a 25 basis point hike as early as July.
Other economic data provided some support:

🔹 Industrial production fell by just 0.8%, beating forecasts

🔹 Retail sales climbed 1.2%, also exceeding expectations

These figures boosted the yen, which in turn pressured Japanese exporters and weighed on equities.

Tech Stocks Slide in South Korea, Singapore
In South Korea, the Kospi dropped 0.5% as chipmakers lost momentum following the fading impact of NVIDIA’s strong earnings report. In Singapore, the Straits Times Index dipped 0.3%.
Australia’s ASX 200 ended flat, with weak retail sales raising hopes for another interest rate cut by the Reserve Bank of Australia. In India, Nifty 50 futures rose 0.1%, suggesting a stronger open near the 25,000 mark.

One-Minute Summary:
Asian equities are under pressure. The reinstatement of Trump’s tariffs and stalled U.S.–China trade talks have dampened investor optimism. Markets in China, Hong Kong, and Japan lead the losses, as global trade uncertainty once again takes center stage. No resolution appears to be in sight.

#stockmarket , #Tariffs , #USChinaTrade , #TradeWars , #TradingCommunity

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After several days of losses, U.S. stock markets staged a strong comeback on Tuesday. The rally was fueled by President Donald Trump’s decision to postpone a 50% tariff on European imports. Investors were also encouraged by Elon Musk’s announcement that he will shift his focus back to his companies, giving a fresh boost to the tech sector.

🔹 Markets Bounce Back as Trump Eases Trade Fears
After a four-day losing streak, U.S. stocks surged. The S&P 500 rose 2.05% to close at 5,921.54, while the Dow Jones climbed over 740 points (+1.78%) to finish at 42,343.65. The Nasdaq Composite outperformed both, gaining 2.47% to close at 19,199.16.
The rebound came after Sunday’s announcement that Trump had agreed to delay the proposed 50% tariffs on European imports until July 9, instead of the original June 1 deadline. The decision followed direct intervention by European Commission President Ursula von der Leyen.

🔹 Musk Stepping Away from Politics Sparks Tech Rally
Tesla shares jumped about 7% after Elon Musk stated he is stepping back from politics to refocus on leading his companies. This headline alone reignited risk appetite in the tech sector, sending shares of Nvidia, AMD, Apple, and Microsoft higher and propelling the Nasdaq to lead the rally.

🔹 Optimism Spreads Beyond Big Tech
The positive sentiment extended beyond tech. U.S. Steel shares rose 2% amid reports that Japan’s Nippon Steel is moving forward with a $55-per-share acquisition. More than 90% of S&P 500 components closed in the green, and small-cap stocks joined the rally — the Russell 2000 index gained about 2.5%.
Markets had been closed on Monday for Memorial Day, and the renewed buying pressure on Tuesday spread across nearly all sectors.

🔹 Confidence Boosted by Strong Consumer Data, White House Optimism
Following a tough previous week, when all three major indexes fell more than 2%, sentiment reversed. On CNBC’s Squawk Box, National Economic Council Director Kevin Hassett said more trade progress is expected this week, boosting investor confidence.
Stronger-than-expected May consumer confidence data also lifted hopes for economic resilience and further trade developments.

🔹 Investors Watching Earnings for Confirmation
This week, investors are closely monitoring corporate earnings to gauge whether the rally has staying power. Okta was set to report Tuesday after the close, while Nvidia, Macy’s, and Costco are expected later in the week.
According to FactSet, over 95% of S&P 500 companies have reported earnings for this quarter, and nearly 78% have exceeded expectations.

🔹 Analysts Cautiously Watching China Tensions
Despite the rally, some analysts remain cautious. Adam Parker of Trivariate Research wrote in a Sunday note that the market currently lacks strong bullish or bearish conviction.
He warned that the bigger issue may still be U.S.-China trade relations. “The only trade conversation that truly matters is what the U.S. does with China,” said Parker. Even with macroeconomic headwinds, he added, the impact on the S&P 500 might end up being less severe than initially feared.

🔹 Momentum Reignites After Holiday Break
Dann Ryan, managing partner at Sincerus Advisory, said Tuesday’s sharp moves were driven by pent-up momentum. “The extended holiday weekend likely added to the energy behind today’s strong gains,” he said. “Trade tensions that had flared up have now cooled, and markets are back in the fast lane.”

💰 Crypto Market Rallies in Parallel
Meanwhile, crypto investors had their own reason to celebrate. The total cryptocurrency market cap surged by roughly $1 trillion, marking a 42% increase since the April 8 low — now nearing $3.4 trillion, just 6% below the December 2024 all-time high.
Even excluding Bitcoin, the market grew by $319 billion, a 35% jump. Still, it remains $380 billion below the November 2021 peak and $381 billion shy of 2024’s record. At the time of writing, Bitcoin was trading at $109,877.

#SP500 , #NASDAQ , #TRUMP , #Tariffs , #stockmarket

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Despite Tesla’s recent stock surge and Elon Musk’s vow to step away from politics and refocus on the company, investor sentiment remains surprisingly bearish. But why exactly?

Big Exit: Gary Black Sells All His Tesla Shares
One of Tesla’s most vocal and well-known investors, Gary Black, announced he has fully exited his position in the company. For the first time since 2021, he no longer holds a single share. His reason? He believes the stock price has completely disconnected from Tesla’s fundamental value.
In a post on X, Black revealed he sold his last batch of shares at $358, stating that Tesla’s valuation has become unmoored from financial reality. His main concern is the company’s price-to-earnings ratio for 2025, which has skyrocketed to 188x, while earnings estimates keep falling — down 5% just last week, and down 40% since the start of the year.
He also noted that Tesla’s delivery numbers are weak, especially in April. He expects second-quarter deliveries to drop 12% year-over-year, and full-year deliveries to decline by 10% — worse than Wall Street’s more modest forecasts of 7% and 5% declines, respectively.

Doubts Over Robotaxi and New “Affordable” Car
Black also warned about the upcoming robotaxi test in Austin, calling it a one-sided risk. Even the much-discussed “affordable” car, expected in July, didn’t impress him. He believes it’s simply a stripped-down Model Y rather than a true game-changer that could open up new markets.
His new 6–12 month price target for Tesla stock is $310. That figure is based on a projection of 5.4 million vehicles delivered by 2030, $12 in adjusted earnings per share, and a 14.2% cost of equity. All factors considered, Black says the current price of $358 is too high.

Shareholders to Musk: Focus on Tesla and Show Up
In addition to financial concerns, a group of activist shareholders is now pressuring Musk to dedicate at least 40 hours a week to Tesla. In a letter sent to Board Chair Robyn Denholm, investors — including the SOC investment group — described what they call a deepening internal crisis.
Though these shareholders control only about 7.9 million of Tesla’s 3.22 billion shares, their concerns have been vocal. They blamed Musk’s political activities — especially his role in Trump’s DOGE government agency — for damaging the company’s reputation and contributing to plunging sales.

Tesla’s Reputation and Performance Take a Hit
Tesla’s most recent earnings report revealed a 71% drop in profit and a 13% drop in revenue year-over-year. The letter described the situation as a “crisis” and claimed the board is failing to act in shareholders’ best interests. It also cited global concerns about labor practices and a damaged brand image.
The letter goes beyond time demands. It calls for:

🔹 A clear succession plan in case Musk departs

🔹 A rule limiting board members’ external commitments

🔹 Appointment of a new independent director with no personal ties to current members

Scrutiny of the Board and Musk’s $56B Pay Package
Tesla’s board has long faced criticism for being too close to Musk. That dynamic became legally significant in December 2024, when a Delaware judge struck down Musk’s $56 billion compensation package, citing conflicts of interest — including the presence of his brother Kimbal on the board.
Some of the same shareholders behind the new letter were part of the campaign that challenged Musk’s 2018 pay plan. At the time, they warned Musk was too overstretched. Today, they repeat the same message:

“The board continues to allow Elon to be overcommitted, failing to demand he fulfill his role as CEO and ‘Technoking’ of Tesla.”

One-Minute Summary
Despite a recent rally in Tesla stock, investor confidence is shaky. Gary Black sold all his shares, citing overvaluation and falling earnings. Deliveries are declining, and planned projects like the robotaxi and low-cost vehicle don’t inspire much optimism. Meanwhile, shareholders are demanding Musk return to Tesla full-time and call the current state a crisis, criticizing the board for failing to act.

🤔 Does Elon Musk still have the focus and energy Tesla needs?

#Tesla , #ElonMusk , #stockmarket , #bearish , #Musk

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“