Inventories may be external tariffs, but the American economy still faces a rocky road. The Trump administration faced its latest crack on Tuesday, as one of the most influential supporters of President Elon Musk, condemning a tax law backed by Trump as a “disgusting abomination”.
Despite the fireworks, investors were optimistic before a compressed meeting between Trump and Chinese President Xi Jinping, who had White House aides. He said It is likely to happen this week. The S&P 500 increased by 0.58 % on Tuesday, driven by technical stocks such as NVIDIA, which increased by 2.80 %.
Tense relationships
After Trump’s support for a second term with huge donations and the manifestations of the campaign, Musk took the head of the newly created government efficiency (DOGE), a role that allowed the CEO of Tesla and Spacex to include himself deeply in the White House. But when Trump’s aggressive tariff policies threatened his corporate wallet, and a prominent rank in the midst of Mash’ara with other members of the White House, Musk began to do so He keeps himself away From the president in a series of general interviews.
However, Moussa’s voice rejection of the Trump Law “Great and Beautiful” in the X Publication on Tuesday, represents the deepest division between the two leaders. Last week, Musk announced that he would leave the government after the end of the “private employee” period, and he returned to the Tesla leadership, Spacex and other projects full time.
In his position, Musk-who led the management campaign to reduce the costs-with the Trump Bill as “full of pork”, adding that any of the legislators who voted in its favor “know that you made a mistake.” The draft law includes sharp tax cuts, discounts in spending on medical aid and food assistance, and increased financing for military deportation and migrants. Tesla’s share price gained 0.46 % on Tuesday and increased by about 55 % since it reached about $ 220 in April.
While Musk and Trump grow more, investors monitor another major relationship: Trump and Xi Jinping. American and Chinese governments have gone back and forth on customs duties and export monitoring policies, causing arrows to see during the past few months. But on Tuesday, stocks rose with investors expecting a meeting that could help secure a trade agreement between the two countries, which agreed to expand the scope of customs tariffs for a period of 90 days in mid -May.
Trump’s exploits of encryption also returned to the main headlines on Tuesday amid reports that the president team intends to launch a digital portfolio where users can store cryptocurrencies and exchange, including self -Trump. Eric Trump and Don Junior, who led their father’s encryption projects, denied the launch of the wallet. Bitcoin rose 0.38 % at the time of publication.
This story was originally shown on Fortune.com
