Markets continued to see-saw on Tuesday as Trump administration officials tried to calm anxious investors. The latest to try to reverse recent volatility was Commerce Secretary Howard Lutnick, who appeared on CNBC to hint at a possible trade deal.
“I have a deal done, done, done, done, but I need to wait for their prime minister and their parliament to give its approval, which I expect shortly,” Lutnick said, buoying stocks, though he declined to specify if he was referring to Canada, the United Kingdom or another country.
The S&P 500 ended up rising 0.58% on the day after a lackluster performance on Monday, which still saw a small improvement from recent dips.
Uncertainty continues
Despite Tuesday’s market rise, Trump officially closed out the first 100 days of his second term with one of the worst starts for a president in almost a century, and the sharpest decline since Gerald Ford took over for Richard Nixon 50 years ago.
Trump’s aggressive and stalwart pursuit of wide-ranging tariffs, including against U.S. allies, has spooked investors, though Lutnick’s Tuesday appearance came as part of what appears to be a broader walkback by the administration. From January 20 to late April, the S&P dropped almost 8%—a shocking performance given investor excitement about Trump’s return to office, including by his staunch supporters such as Elon Musk. Tesla is still 50% off its December peak, though Musk’s recent retreat from his Department of Government Efficiency has stemmed the stock’s free fall.
Even as Trump officials work to restore confidence in markets, major companies continue to express caution over the impact of tariffs on everyday prices. Much of the Tuesday news cycle centered around a report that Amazon was considering displaying tariff costs to consumers on every product—a decision the company denied after the White House called the plan “hostile and political” and Trump called founder Jeff Bezos. Amazon shares declined 0.17% on the day.
Still, further tailwinds could boost future market performance. Late Tuesday afternoon, the Wall Street Journal reported that Trump is expected to soften automotive tariffs by preventing duties on foreign-made cars from stacking on other tariffs and reducing taxes on certain foreign parts used to manufacture cars in the U.S.
If implemented, the move would represent a reprieve for auto manufacturers, continuing Trump’s policy of creating carve-outs for specific industries, as he earlier did for phones, computers, and chips. Apple has been one beneficiary, with its stock gaining nearly 3% over the past week. Ford shares gained more than 1% over the past day, though General Motors shares dropped around 0.6% on Tuesday.
As the Trump administration’s decisions continue to whiplash investors, other countries are seeking stability. On Monday, Canada’s liberal wing claimed a political comeback with former central banker Mark Carney catapulted into the prime minister’s office after it seemed his party would lose due to the unpopularity of his predecessor, Justin Trudeau. Voters’ support for Carney, who has criticized Trump’s harsh rhetoric against Canada, was a sharp rebuke to the U.S. government’s protectionist policies.
