Stocks have hit new highs despite President Trump’s escalating trade war. Some traders may be calling his bluff, but Jamie Dimon of JPMorgan Chase advises caution.
Andrew here. We’re taking a look at how markets are staying buoyant amid the debate over when the Fed might cut rates, and how tariffs — and President Trump’s continued pressure on the central bank to lower borrowing costs — could influence the outcome.
We also surveyed corporate governance experts on their reactions to Andreessen Horowitz’s call for companies to leave Delaware. And for those of you playing around with A.I., the C.E.O. of Honeywell tells us his best tips and tricks.
Rising tariffs … and stocks?
Another day, another round of tariff threats from President Trump — and another record for the S&P 500. What gives?
It could be the result of growing market optimism about an interest-rate cut, or relief that some companies have started delivering surprisingly upbeat results. (More on that below). Or, it could be a bit of “TACO trade” déjà vu, with investors convinced that Trump will back down on trade again.
But Jamie Dimon of JPMorgan Chase offered another explanation on Thursday: “Unfortunately, I think there is complacency in the markets.”
The latest: Trump said on Thursday that he would impose a 35 percent levy on Canada, effective Aug. 1, and that he planned to raise baseline tariffs on all trading partners to between 15 percent to 20 percent, from 10 percent. “I think the tariffs have been very well-received,” he told NBC News. “The stock market hit a new high today.”
