Now that President Donald Trump appears ready to partially walk back his, let's say, problematic economic policy announcements of the last few weeks, markets are clawing back some of their trillions in dollars of losses.
Still, the S&P is down 7% over the last six months — or about $35,000, the price of a car (pre-tariffs!), on a half-million-dollar pension 401(k) — because Trump remains in office for at least another three and a half years and investors around the world don't trust his judgment quite so much as they used to.
You can weigh in on your feelings about all of this in today's poll below👇🏻.
Global markets experienced a notable uptick yesterday after Trump appeared to soften his stance on tariffs. U.S. stocks saw significant gains, with the S&P 500 climbing 1.7% $SPX ( ▲ 1.67% ) . The rally mirrored positive movements in European and Asian markets, reflecting a wave of guarded optimism.
It all came after Trump hinted that U.S. tariffs on Chinese imports could be reduced "substantially" from the current levels. This fueled hopes on Wall Street that a trade deal with China might be forthcoming. "There is an opportunity for a big deal here," said Treasury Secretary Scott Bessent.
"145% is very high and it won't be that high," Trump said in a question-and-answer session with reporters in the Oval Office. "It won't be anywhere near that high. It'll come down substantially. But it won't be zero."
Now you can sign up for an optional ad-free version of Need2Know! Subscribe for just $5 a month, or $50 a year, and you can continue to enjoy this reasonably high-quality newsletter uninterrupted. Bonus: The immense satisfaction that comes from supporting journalism*!
Trump says he has 'no intention' of firing Fed chair
It seems the president is listening to Cheddar's Need2Know polls. You'll recall that on Monday we asked Cheddar readers, "Is Donald Trump right to attack Fed Chair Jerome Powell over the economy?" While 76 of you said, "Yes, it's good to see Trump standing up for the economy," a whopping 1,346 of you said, "No, he should let Powell do his job unimpeded." From your lips to Trump's ear!
Speaking to reporters on Tuesday, Trump clarified that he has "no intention" of firing Powell, despite expressing dissatisfaction with the Federal Reserve's monetary policies. The clarification came on the heels of statements in, let's say, the opposite direction, which had caused ripples across financial markets.
While acknowledging Powell's independence, Trump has not hesitated to criticize him publicly. On social media, the president has repeatedly demanded more aggressive rate cuts, asserting that current rates could impede economic growth. The Federal Reserve, however, remains firm in its commitment to resisting political interference, aligning with its mandate to stabilize prices and boost employment.
Tesla's $TSLA ( ▲ 5.37% ) recent earnings report revealed a 20% drop in auto revenue, sparking questions about the company's trajectory. However, a key takeaway from the aftermath of the report was Elon Musk's announcement that he would now spend more time focusing on Tesla, and less on DOGE. What does this shift mean, and how will it impact the company's future?
According to Seth Goldstein with Morningstar $MORN ( ▲ 0.6% ) , the first quarter was slow for Tesla due to the transition to the refreshed Model Y. "We think a lot of that came from the switch to the new refreshed Model Y, which was not yet out in many markets through the start of the year," he said. He noted that the rollout varied by region, impacting sales. Additionally, consumers are "simply waiting on the new model wire more affordable vehicle before they bought a Tesla this year. And it showed up in the results."
In other words? The revenue drop has nothing to do with Musk's arm gestures on inauguration day, his political alliances within the Trump administration, or the backlash against Tesla dealerships across the country. In Seth's opinion. "The data so far shows that we don't see much political damage from Elon Musk's activities," he said. While increased risk exists, deliveries have shown positive trends as new models are released.
One of the biggest headlines was Musk's plan to step back from DOGE to dedicate more time to Tesla. Goldstein compared this to Musk's period with Twitter: "I view this situation as very similar to when Elon Musk took Twitter private several years ago, where initially after the acquisition closed, he spent a lot of extra time at Twitter, but then eventually took a step back and returned more time to Tesla." He emphasized that Tesla's management is strong and projects are still on track. "We haven't seen timelines slip. You know the affordable vehicle still on track for production by the middle of this year. The RoboTaxi testing in Austin is still on track for June," Goldstein said.
Despite investor concerns about Musk's divided attention, Goldstein maintains a positive outlook. "Elon's always had multiple business ventures outside of Tesla or multiple other projects he's working on," he noted. "I think that's what he likes to do in his free time, and I would expect that to continue."
The stock saw a nearly 7.5% increase following the earnings report, despite revenue and earnings per share falling below expectations.
President Trump's plan for energy dominance has hit market headwinds, said Ben Lefebvre, energy reporter at Politico, explaining that tariffs hit the oil and gas industry in two significant ways. First, there are direct tariffs, primarily on steel. "The industry uses a ton of steel, everything for pipelines, drill bits, drilling rigs," Lefebvre noted. The resulting 20–25% price increase on steel directly drives up operational costs. Second, the indirect impacts are just as concerning. If the U.S. economy falters due to trade wars, people drive less, businesses travel less, and overall energy demand declines. This was reflected in a sharp drop in oil prices, with Lefebvre pointing out a $12 decline following a key tariff announcement from the president.
The uncertainty created by tariffs is "spooking the market," Lefebvre stated. The impact isn't confined to the U.S.; it's a global issue. As countries like China and regions like the EU reduce trade with the U.S., their economies slow down, further dampening global oil demand. Both Brent and WTI crude oil benchmarks moved in tandem, reflecting this worldwide economic concern. As Lefebvre pointed out, "It's not just people thinking there's gonna be a slowdown here, but everywhere."
The oil industry's reaction to these tariffs was one of shock. Having invested heavily in Trump's election campaign, many executives and lobbyists didn't expect such aggressive trade policies. They assumed Trump would "let the Biden economy just kind of coast," he said, and focus on regulatory changes.
While consumers may enjoy lower gas prices, Lefebvre cautioned about the underlying reasons. If prices drop due to economic slowdown and potential layoffs, the "cheap gas is great if you've got a job" argument loses its value.
Here's the latest jaw-dropping property listing turning heads: a $110 million quadplex penthouse atop the landmark Steinway Tower at 111 West 57th Street.
Spanning four levels, the penthouse combines two penthouses into one penthouse. Together, they feature 11,480 square feet of unparalleled living space, including five bedrooms, six bathrooms, multiple lounges, and a 618-square-foot terrace boasting panoramic views of Central Park and both rivers.
It is 23 times the size of my apartment. But my views are better.
Listing agent Nikki Field of Sotheby's International Realty noted that buyer interest has been strong, with several "qualified inquiries" and tours already underway. Despite volatile stock markets and uncertainties surrounding trade policies, Field says her affluent clientele remains unaffected, viewing ultra-prime residential real estate as a core asset class.
While the luxury market shows signs of caution in broader contexts, sales above $100 million continue to trend up globally. In fact, I'm considering making, let's say, an unqualified offer on such a property.
We asked you to predict Pete Hegseth's career trajectory. You answered:
🟨🟨🟨🟨⬜️⬜️ I expect him to be out of a job by Friday this week (379)
🟩🟩🟩🟩🟩🟩 I expect him to be out of a job by June (499)
🟨⬜️⬜️⬜️⬜️⬜️ I think he might just about last until December (82)
⬜️⬜️⬜️⬜️⬜️⬜️ I expect him to continue in his job all year and next year and beyond because the focus on his Signal chats is a waste of time (71)
1031 Votes—via @beehiiv polls
Don't miss: 'NYC Innovates'
Our new "NYC Innovates" show goes live next Monday wherever you watch Cheddar, but those of you who want to watch it before then can check it out on YouTube!
"NYC Innovates" uncovers the groundbreaking ideas and passionate minds driving the city's evolution across diverse industries. In this episode, join host Chris Castellino as he explores remarkable transformations.
Witness how the iconic, Michelin-starred restaurant Eleven Madison Park, under Chef Daniel Humm's visionary leadership, made the bold pivot to an entirely plant-based menu. Plus: Dive into the resilient spirit of NYC's music scene at Le Poisson Rouge. Learn how this fiercely independent Greenwich Village venue, founded by David Handler, thrives amidst industry giants by championing eclectic artists and fostering a unique connection with its audience. Finally, journey to a Brooklyn startup, Air Company, where CEO Gregory Constantine reveals how they're tackling climate change head-on by transforming captured carbon dioxide into valuable, sustainable products — from premium vodka to revolutionary jet fuel, partnering with major airlines and even the Department of Defense. Tune in, and be inspired!
Want more Cheddar? Watch us!
Search "Cheddar" on Samsung, YouTube TV, and most other streaming platforms.
N2K is the tip of of the cheeseberg for financial news, interviews, and more.
