Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA, May 12, 2025.
Brendan McDermid | Reuters
There is a mild air in Wall Street. Stocks have been rising all week. The S&P 500 has just finished its fourth game with a bump of 4.54% over the last four days.
Of course, with the United States negotiating agreements with other countries, tariffs don’t look that tricky. But that's not to say it's a perfect path forward.
For example, despite an agreement with the United States, China is still retaining rare earth metals, which is crucial for important industries such as defense and energy, from exports to the United States
Similarly, even if India reaches an agreement with the United States, U.S. President Donald Trump seems to want more than just want to impose U.S. import taxes. Trump told Apple CEO Tim Cook that he doesn't want the Cupertino-based company to be "built in India". It's hard to imagine India agreeing to make Apples-or let the Big Apple really start making Apple products.
Fed Chairman Jerome Powell appeared to be aware of the complications and warned Thursday that the “supply shock” could be “more frequent and possibly more durable.”
Therefore, the buoyancy in the market may be aroused by people - the United States on the weekend - the China trade deal caught the attention - and this buoyancy may disappear once the gravity of the economic headwind takes over again.
Powell warns of potential supply shock
Fed Chairman Jerome Powell said on Thursday that long-term interest rates could be higher because “inflation could be more volatile because it could be “more frequent, possibly longer, supply shocks to the economy.” Powell did not propose Trump’s tariffs, but marked the surrounding risks at the Fed’s May meeting.
The fourth day of the S&P Clock victory
On Thursday, S&P 500 Obtained 0.41%, its fourth positive meeting, Dow Jones Industrial Average Up 0.65%, but Nasdaq Composite Materials Underperformed, down 0.18%. Pan-European Stoxx 600 Climbing to 0.56%, making up for losses from early trading. this FTSE 100 The data showed that the UK economy grew by 0.7% in the first quarter, thus increasing by 0.57%.
"A small problem with Tim Cook": Trump
During Washington's trade relations with India on Thursday, Trump said he doesn't want to apple CEO Tim Cook builds the factory in India. "I had a little problem with Tim Cook yesterday," Trump said. "I said to him, 'My friend, I treat you very well. I don't want you to build in India."
Rare earth exports from China are still blocked
China temporarily suspended export restrictions on 28 U.S. companies after a trade deal reached by Beijing and the Trump administration over the weekend. But it continues to block exports of seven rare earth metals to the United States. These metals are crucial to the U.S. defense, energy and automotive industries.
Putin and Trump skip peace meeting
Russian leader Vladimir Putin and his White House rival Trump chose to skip Türkiye-Ukraine-Russia peace talks. When Ukrainian President Volodymyr Zelenskyy arrived in Ankara on Thursday, he responded to the slightest diplomacy, saying that a delegation of lower-level officials sent to Turkey by Russia showed that Moscow showed Moscow was not serious.
(PRO) UK - US deals benefiting from European automakers
British businesses are still spreading precisely what the recently unsettled UK trade deal means to them. The EU has not yet reached its own deal. Still, one of the group's largest economy will see gains due to its UK presence.
Indian Border Security Force (BSF) soldiers remained vigilant at the postal entrance of the Waga border in India-Pakistan, about 35 kilometers from Amritsar on April 24, 2025. India took a series of punitive diplomatic measures against Pakistan on April 23, accusing Islamabad of supporting "transnational terrorist attacks on Kashshmir" in Islamabad, which made Islamabad "support Islamabad." (Photo by Narinder Nanu/AFP) (Photo by Narinder Nanu/AFP via Getty Images
Narinder Nanu | AFP | Getty Images
Indian economic story is not affected by Pakistan's tensions
Indian stock markets have emerged from weeks of turmoil and have surpassed the latest India-Pakistan level before the outbreak.
This is not surprising, though, because for an increasing number of global investors focusing on global investors in India, this border crisis, while severe, is now seen as a variable in a more complex equation.
Indeed, the risks of recent military outbreaks seem to be offset by what many consider to be an attractive investment destination.