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Inching Higher. The S&P 500 and Nasdaq Composite eked out small gains on Tuesday, while the Dow Jones Industrial Average closed exactly at the break-even line in a relatively quiet session. President Donald Trump said the U.S. is close to a phase-one trade deal with China. Federal Reserve Chairman Jerome Powell is scheduled to testify in Congress on Wednesday and Thursday—a potential source of news about the outlook for the economy and interest rates.
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- check on Trump’s speech in New York today;
- explain why the market didn’t react much;
- and wonder whether new tariffs on European autos will be delayed again.
No Update
Stocks were trading largely flat on Tuesday as investors largely shrugged off a speech from President Trump that didn’t offer much meaningful information. The Dow Jones Industrial Average closed flat at 27,691.49, the S&P 500 edged up 4.83 points, or 0.16%, to finish at 3091.84 and the Nasdaq Composite gained 21.81 points, or 0.26%, to close at 8486.09.
Speaking at the Economic Club of New York, Trump talked up the U.S. economy and jobs growth during his term and confirmed that a preliminary trade deal with China—the first step of a broader agreement—is close to being completed. But he didn’t give any details about the progress.
Trump also took credit for the market’s rise. The Dow has returned 50% since Trump took office, and sits near an all-time high. Trump said the gains came despite what he views as the Fed’s policy mistakes by raising rates too fast last year and cutting too slow this year.
Such statements were largely reiterations of his previous positions, so they didn’t surprise investors or move the market.
Ultimately, his scripted remarks were similar to campaign stump speeches he’s given in the past, but in more detail and with a slightly more data-driven and economic-tilt that befits the audience he was speaking to,” wrote Chris Zaccarelli of Independent Advisor Alliance after Trump delivered the speech.
Trump is also expected to put off a decision on whether to impose tariffs up to 25% on European auto imports for another six months, following repeated hints from the Commerce Secretary that the White House. But he didn’t offer any update on the status of auto tariffs in today’s speech, either.
Earlier this year, Trump instructed the U.S. Trade Representative Office to negotiate agreements with the European Union and Japan to address what he called a national-security threat “causing harm to the American automobile industry.” In September, the U.S. signed a limited trade deal with Japan on such issues, but hasn’t reached an agreement with the EU so far. The White House already postponed the decision once back in May, and the current deadline is slated for this Wednesday.
For the rest of the week, investors will watch Powell’s testimony on Wednesday and Thursday, as well as consumer-price index data on Wednesday, producer-price index data on Thursday, and October retail sales data on Friday.
Write to Evie Liu at evie.liu@barrons.com