By
Steve Muchoki
April 16th, 2024
The latest tweets by President Trump may set the pace for active support in the stock market this week. S&P 500 openned higher on Sunday.
There are no hopes that the struggling U.S. Stock Market will get better anytime soon. However, a new Twitter feed by Donald Trump was flooded by a positive conversation concerning the trade conflict and Sunday’s progress with China.
An optimistic Trump could be exactly what the doctor prescribed for crushed markets, placing the wind at the S&P 500’s back next week. By Sunday evening, the U.S. stock future opened higher than it could be expected.
We are doing very well with China, and talking!
— Donald J. Trump (@realDonaldTrump) August 18, 2019
Trump Backs off
It has been all modification from the administration of the United States immediately after markets analysis on Wednesday. The postponing of tariffs, together with these recent tweets, could certainly influence the market that has demonstrated impressively flexible over the past few days.
The S&P is still stable beyond the 200-day general average, creating a transparent line of help on the daily chart.
‘No Recession’ Is Coming
Larry Kudlow, one of President`s Trump`s senior economic advisers, assured investors on Sunday via a national television that everything is going well, and there is no need to worry that a recession was warming up to attack the U.S.
“There’s no recession coming… the pessimists are wrong. It’s not going to happen. We’re doing pretty darn well in my judgment. Let’s not be afraid of optimism,” said he.
Nevertheless, it’s worth mentioning that some people, including the TV host, were fast to reboost Kudlow memory of his similar statement just prior to the recession of 2008; however, in this case, his confidence may have real grounds.
The President has been always planning to introduce some modifications in its policy while making it milder, acquire some trade deals with rival China, and make the S&P 500 loose by next year.
Our economy is the best in the world, by far. Lowest unemployment ever within almost all categories. Poised for big growth after trade deals are completed. Import prices down, China eating Tariffs. Helping targeted Farmers from big Tariff money coming in. Great future for USA!
— Donald J. Trump (@realDonaldTrump) August 18, 2019
S&P 500 by the Next Year
In the absence of the trade conflict, there is no doubt that the U.S. stock market is perhaps the most attractive location to hold equities. With the economy of Germany moving into recession, probably leading the remaining Eurozone with it, there is undoubtedly the minimal case for returning into the Euro properties. President Trump understands this, and it places a floor below the S&P 500 that enables him to aggressively hold dialogues with China without igniting the downfall it perhaps would in any other country.
The President has often utilized the S&P as a measure to address issues with China and structure his policy. The stock market bull may enjoy their restored confidence due to the market-friendly moods of the President.