By Yuri Kageyama and Matt Ott, Associated Press Business Writers
The American markets are ready to open up with large gains, a clear sign of relief after President Donald Trump said that he would not try to fire the chief of the federal reserve.
The term contracts for the industrial average of Dow Jones jumped 1.9% before the bell on Wednesday, while the S&P 500 term contracts increased by 2.6%. The term contracts on the NASDAQ increased 3%.
Trump, upset that the federal reserve did not immediately reduce interest rates, said that he could dismiss the president of Fed, Jerome Powell. But Trump told journalists on Tuesday: “I do not intend to fire him.”
Trump wants Powell and the Fed to reduce its reference loan rate to help stimulate the economy. Powell and other Fed officials said they were planning to be cautious with interest rates in the context of economic uncertainty caused by Trump prices and inflation which remain above the 2% target of the Fed.
Most legal researchers agree that Trump cannot dismiss Powell from the Fed Governors’ Council, and there is no legal precedent to do this. However, there is less agreement as to whether a president can withdraw it as a president.
The markets are also reacting to the comments on Tuesday of the US Secretary of the Treasury Scott Besse Tuesday. He said that the current confrontation on prices with China was not sustainable and that it expects a “de -escalation” in the trade war.
“Of course, the markets will continue to listen to the last rhetoric of the White House on the prices and any index of the next trade agreements. As such, market management will continue to be dictated by Trump’s latest whims of prices and trade,” said Tim Waterer, chief analyst at KCM Trade.
The only prediction that many Wall Street strategists are willing to do is that the financial markets will probably continue to settle with the hope that Trump could negotiate agreements with other countries to reduce his prices. If no transaction of such comes quickly enough, many investors expect the economy to fall into a recession.
Among the actions that see a big rebound is Tesla, after Elon Musk that he will spend less time in Washington and more time to direct his electric vehicle company. The promise follows the quarterly financial report of the company Tuesday at the end of Tuesday and a massive tail of profit. Tesla has been accumulated by vandalism of its cars on the street, they are dealers, generalized demonstrations and calls to a boycott of consumers, all a reaction to musk surveillance of cost reduction efforts for the American government.
Musk’s promise to distinguish himself from the Trump administration overshadowed the benefits of discoloration in Tesla, which increased from 1.39 billion to 409 million dollars in the first quarter.
Tesla’s shares increased by 7% before the opening bell on Wednesday.
Large technological actions also obtained Wednesday Wednesday, Nvidia paving the way. The actions of the flea manufacturer have tilted wildly with recent undulations on the market and increased by 5.5% before the bell.
Apple increased by 3% and Meta won 4.5%, after the European Union inflicted a fine of 500 million euros and 200 million euros respectively for breaking its digital competition rules.
In Europe at noon, CAC 40 French jumped 2.4%, while the German Dax increased by 2.6%. The British FTSE 100 won 1.4%.
In Asia, the Japanese reference Nikkei 225 won 1.9% to finish at 34,868.63. Australia S&P / ASX 200 jumped 1.3% to 7,920.50. South Korea Kospi gained 1.6% to 2,525.56. Hang Seng of Hong Kong added 2.4% to 222,072.62, while the Shanghai composite dropped from 0.1% to 3,296.36.
In energy trading, US Benchmark added 55 cents at $ 64.22 per barrel, but is still on the right track for its worst month since October 2023. It has been good for consumers, with the average price for a gallon of gas in the United States at $ 3.17, almost 14% lower than last year.
Brent Crude, the international standard added 54 cents to $ 67.98 per barrel.
The US dollar fell to 141.99 Japanese yen from 142.37 yen. The euro cost $ 1,1392, against $ 1,1379. ___
Originally published:
California Daily Newspapers
