Markets
Powell did not even need to budge in response to Trump’s rate-cut pressure. Trump said today that he is not planning on sacking Powell. More importantly, Bessent mentioned in a close-door meeting hosted by JP Morgan that tensions with China will de-escalate. Trump also admitted that tariffs against China will drop, but not to zero. Equities climbed on the news. $TSLA reported disappointing earnings, but Musk’s intention of significantly reducing time at DOGE as well as prospects of robotaxis rolling out provided good consolation. $DXY gained slightly. $Gold retreated. $BTC roared above $90k instantly.
Headlines and Quotations
WSJ
Trump Says He Has ‘No Intention’ of Firing Fed Chair Powell
President Trump said he is not planning to fire Federal Reserve Chairman Jerome Powell—and he signaled that tariffs on China could be lowered. “I would like to see him be a little more active in terms of his idea to lower interest rates … but, no, I have no intention to fire him,” he told reporters in the Oval Office.
Bessent Tells Investors He Expects Trade Tension With China to De-Escalate
- Treasury Secretary Scott Bessent on Tuesday reassured attendees of a closed-door JPMorgan investor summit that he expects the trade war with China to de-escalate
Tesla Profit Sinks, Hurt by Backlash Over Elon Musk’s Political Role
- Tesla’s net income slid 71% in the first quarter
Tesla’s Global Vehicle Deliveries Sank 13% in First Quarter
- Back to 22Q3 levels
Stock Market Today: Stock Futures Jump After Trump Says He Has No Plans to Fire Fed Chair
Ukraine’s Zelensky Pushes Back on U.S. Peace Plan
- Ukrainian President Volodymyr Zelensky pushed back on a U.S. proposal to recognize Russia’s control of Crimea as part of a cease-fire agreement
Consulting Firms Offer to Cut Up to $20 Billion From Federal Contracts
At least two firms offered 7% to 10% discounts on their labor costs within existing contracts, while others provided credit proposals of $100 million toward their work. At least one company offered free deployment of AI agents within the government to make it easier for federal agencies to work together.
CNBC
Chinese freight ship traffic to busiest U.S. ports, Los Angeles, Long Beach, sees steep drop
- For the week ending May 3, the number of freight vessels leaving China and headed to the Southern California ports, the main U.S. ports receiving Chinese freight and other Asian trade, is down 29% week-over-week, according to Port Optimizer
Sam Altman steps down as Oklo board chair, freeing nuclear startup to work with more AI companies
- “As Oklo explores strategic partnerships to deploy clean energy at scale, particularly to enable the deployment of AI, I believe now is the right time for me to step down,” said Altman.
Investing.com
USD weak unless proven otherwise, says Macquarie strategist
- Shvets suggested that the longstanding view of the U.S. dollar as a strong currency might need re-evaluation.
Trump considering $5,000 ’baby bonus’ to boost declining U.S. birthrates – NYT
- This is just one idea the Trump administration is considering to boost America’s declining birthrate, the report stated.
Bloomberg
Amundi Says Clients Are ‘Massively’ Repositioning Into Europe
- It’s the latest example of the “sell-America” sentiment gripping markets, as even investors once seen as bullish on US stocks sound the alarm.
