US tech stocks rallied by 2% on Tuesday after hopes increased over trade deal talk.
The NAS 100 found support at the 17,000 level and is now looking to secure the next leg higher. A move to 20,000 is possible this week if buyers continue to return.
The stock market rallied as the White House said it was hopeful for trade deals with over 100 countries that could settle recent tariff wars. Treasury Secretary Scott Bessent also hinted at a possible easing in tensions with China.
“No one thinks the current status quo is sustainable,” he said. President Trump added tariffs of 145% on China, which hit back with a 125% tariff on US products.
No trade deals have been announced since the April 2 blanket tariffs, but the White House Press Secretary said there was progress.
“There is a lot of progress being made. We now have 18 proposals on paper that have been brought to the trade team”.
Leavitt said the ‘entire trade team’ was meeting with 34 countries this week after the 90-day pause. The US markets were heading for their worst April since 1932 before the latest rally. Some of those losses came after Trump’s criticism of Fed Chair Jerome Powell and threats to remove him.
Markets were afraid of a panic move lower if he interfered with the central bank’s independence. The recent stock rally will lighten the mood but there is still negative headline risk.
Trump said he has “no intention” of firing Powell in another climbdown related to market losses. “I would like to see him be a little more active in terms of his idea to lower interest rates,” Trump said, despite his recent personal attack against the Fed Chair on social media.
Trump may not be helping his own situation as Powell may want to cut rates at the next central and appear to be taking his cues from the President.
