- An idea of a “Trump put” regained steam Monday following more than a month of hard-to-digest volatility brought on by the president’s trade war.
- “There is optimism floating out there amongst the icebergs of uncertainty that the president won’t let this get out of hand and throw us into a recession,” said Sam Stovall, chief investment strategist at CFRA.
- Markets face other obstacles beyond the trade gyrations. Barclays strategists say they are “neutral risk assets” given those headwinds.
The tentative U.S.-China trade deal brought a fresh wave of optimism to Wall Street that President Donald Trump won’t let this year’s damage to the stock market get out of control.
An idea of a “Trump put” regained steam following more than a month of hard-to-digest volatility brought on by the president’s trade war. For Trump, it has been an uncharacteristic disengagement from Wall Street happenings considering how much emphasis he put on financial markets during his first term.
Investors for now at least can take some comfort that the White House is on their side, even if the mood during the strong rally held a dose of trepidation.
“There is optimism floating out there amongst the icebergs of uncertainty that the president won’t let this get out of hand and throw us into a recession,” said Sam Stovall, chief investment strategist at CFRA. “We have to realize that the uncertainty has not been totally cleared away. We can breathe a sigh of relief, because we have now another 90-day pause period.”
Following the weekend announcement that the dueling parties had suspended reciprocal tariffs pending a 90-day negotiating period, major averages rallied, posting better than 2% gains across the board. The Russell 2000 small-cap index, which had taken the brunt of the tariff beating, surged more than 3%.
Source: https://www.cnbc.com/2025/05/12/markets-are-putting-their-trust-back-in-trump-as-long-as-trade-deals-keep-going.html