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  • 7 months ago
Wall Street closed mixed as General Motors plunged on a $1 billion tariff hit, while Tesla gained ahead of its earnings. Investors remain cautious amid ongoing U.S. trade tensions and looming tariff deadlines, with AI optimism keeping markets near record highs.
Transcript
00:00Wall Street shares ended mixed on Tuesday, with steep losses in General Motors and a gain in Tesla
00:06as investors focus on recent and upcoming quarterly reports and watch for signs of progress in U.S. trade discussions.
00:15GM tumble after the automaker reported a $1 billion hit from tariffs to its quarterly results,
00:21adding more fuel to investors' concerns about U.S. President Donald Trump's global trade policy.
00:26Tesla climbed a day before its quarterly report, while Alphabet, also reporting on Wednesday, also rose.
00:34Optimism about heavy spending on artificial intelligence has underpinned a rally in Wall Street's most valuable companies,
00:41with the S&P 500 trading around record highs.
00:44The uncertainty that the on-again, off-again tariff policy announcements is really starting to affect prices
00:55and returns for different sectors of the market and different parts of the economy differently.
01:03I think that the likelihood is that the August 1st deadline gets pushed back yet again.
01:13Secretary of the Treasury, Scott Besant, has already announced that the August 12th deadline pertaining to China
01:20is going to be pushed back, and what that means is that we're going to be living with this uncertainty,
01:28in particular those sectors of the market where the tariffs really bite.
01:32We saw this with GM earnings recently, where they took a billion-dollar hit on the tariffs.
01:40We think that this uncertainty is going to continue to drive the markets, both fixed-income equities, for quite some time to come.
01:47The Trump administration is not going to give up on this.
01:52President Trump has been talking about tariffs, and he has a strong belief in tariffs.
01:56He's been talking about this for 30 years.
01:59The fact that he's gotten some pushback in certain areas, the fact that he hasn't reached a lot of actual hard deals so far,
02:09it's only been 90 days.
02:11In the world of trade negotiations, 90 days is nothing.
02:14They can't even agree to where to set the bargaining table in 90 days.
02:19So we've got a long way to go on this.
02:21My guess, my strongest sense, is that we're going to end up with across-the-board tariffs
02:27that are going to be in the range overall of around 30 percent.
02:33U.S. trade policy remains a major point of uncertainty for investors and companies,
02:37as Trump self-imposed August 1st deadline for many countries to reach agreements with the White House approaches.
02:44U.S. Treasury Secretary Scott Benson said he will meet his Chinese counterpart next week
02:49to discuss an extension to the August 12th deadline set for tariffs on imports from China.
02:54Let's get started.
03:05Let's get started.
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