Wall Street experienced positive movement during Friday’s session because the S&P 500 rose 0.8% for its ninth consecutive gain while the Dow Jones Industrial Average increased 316 points (0.8%) and the Nasdaq composite rose 0.8%. The strong April jobs data which revealed 177,000 new positions exceeded expectations while showing a decrease from March numbers created positive market sentiment. Microsoft (2.6%) and Nvidia (2.1%) together with JPMorgan Chase (1.3%) and Visa (1.8%) led the market gains.
The report appeared before President Trump implemented his complete tariff policy which included 145% China tariffs while many April tariffs received 90-day postponements. Higher import expenses will likely reduce both employment opportunities and consumer spending according to economic experts who point to the 0.3% Q1 economic decline. Businesses have started to withdraw their projections because of ongoing tariff-related uncertainty.
Energy stocks performed poorly as Exxon Mobil lost 0.3% while Chevron gained 0.3% because crude oil prices dropped by 18%. The 10-year Treasury yield increased to 4.27% while Treasury yields rose. The market continues to hold onto hopes for tariff reductions through trade agreements but economic tests challenge the current market upswing.
11) Carney’s Diplomatic Edge Over Trudeau in Trump Relations
After his Liberal Party secured a near-majority in the election Prime Minister Mark Carney received a lukewarm endorsement from President Donald Trump who described him as the candidate who “hated Trump the least.” The first phone call between Trump and Carney led to a White House meeting which would take place within seven days.
The Harvard-Oxford education combined with his wealth makes Carney more appealing to Trump than Justin Trudeau was because of their strained relationship. The Centre of International Governance Innovation’s Paul Samson believes Carney’s strategic approach and calm nature could help establish personal diplomatic relations. Carney dismissed Trump’s “territorial views” because they would never materialize just as he did during his election campaign when opposing U.S. takeover threats.
The tariff relief does not alleviate Canada’s need to resolve its migration issues and trade deficits which Trump continues to inflate. Carney highlighted Canada’s position as the leading export destination for 40 U.S. states and potential mineral supplier while suggesting alternative partnerships with the UK or EU. Carney seeks to establish a partnership with Trump while maintaining Canadian sovereignty through strategic management of economic relations.
