CNBC Daily Open: Definite tariffs could be better for markets than on-and-off ones
May 30, 2025 - cnbc.com
The U.S. federal trade court's decision to strike down President Trump's "reciprocal" tariffs was temporarily paused by an appeals court, allowing the Trump administration to respond. This development has introduced uncertainty in the markets, affecting trade negotiations and investor confidence. Despite initial market gains buoyed by Nvidia's positive earnings, the S&P 500, Dow Jones, and Nasdaq Composite saw limited growth due to tariff confusion. Federal Reserve Chair Jerome Powell emphasized that interest rate decisions would remain independent of political influence. Meanwhile, the SEC dropped its lawsuit against Binance, marking a symbolic end to its crypto crackdown.
In other news, a rivalry between Elon Musk and Sam Altman is complicating Trump's dealmaking efforts in the Middle East. Musk attempted to disrupt a major AI infrastructure deal involving OpenAI, Oracle, Nvidia, Cisco, and Emirati firm G42, after learning that his startup, xAI, was excluded. The announcement of the Stargate AI campus in the UAE was delayed as stakeholders, including the White House, navigated Musk's objections. JPMorgan analysts suggest that European equities may continue to outperform U.S. markets over the next 12 to 18 months.
Key takeaways:
Trump's "reciprocal" tariffs were temporarily reinstated by a U.S. federal appeals court, creating market uncertainty.
U.S. stock market gains were limited due to confusion around tariffs, despite positive earnings from Nvidia.
Federal Reserve Chair Jerome Powell emphasized that interest rate decisions should be based on economic data, not politics.
The SEC dropped its lawsuit against Binance, signaling a shift in the U.S. administration's stance towards the crypto industry.
