U.S. Treasury Secretary Mnuchin: Ordinary investors continue to hold stocks due to their trust in President Trump.

Taiwan • Business • 04/29 17:30
U.S. Treasury Secretary Mnuchin: Ordinary investors continue to hold stocks due to their trust in President Trump.

At a White House press conference on April 29, U.S. Treasury Secretary Scott Bessant stated that despite market fluctuations due to President Trump's high tariff policies, ordinary investors continue to hold their stocks, indicating their trust in Trump. Bessant cited data from Vanguard, noting that 97% of Americans refrained from stock trading during the first 100 days of Trump's presidency, which reflects confidence in his policies. Against this backdrop, the Trump administration is conducting trade negotiations with several countries and exerting pressure on China.

Key Updates

04/30 07:05

U.S. stock index futures fell across the board: Dow Jones futures fell 105 points, pressure from tech stocks drags Nasdaq futures down.

On April 30, 2025, at 1:31 PM Taipei time, futures for the three major U.S. stock indices fell. Dow Jones Industrial Average futures fell 105 points to 40,553, down 0.26%; S&P 500 futures dropped 27.25 points to 5,556.5, down 0.49%; Nasdaq 100 futures fell 128 points to 19,514, down 0.65%. Investors are waiting for earnings reports from major U.S. tech companies and economic data, resulting in cautious market sentiment and subdued futures performance.

04/30 01:30

Early Days of President Trump's Second Term: Fast Money Traders Betting on Pharmaceuticals and Semiconductors, Avoiding Consumer Credit and Trade with China

In the first 100 days of President Trump's second term, the U.S. financial markets saw significant volatility. Corporate investments hit new highs, but the stock market performed poorly. Facing the tariff war and policy uncertainty, traders, such as hedge funds, adjusted their strategies, placing bets on big pharmaceutical companies, semiconductors, and international markets, while steering clear of consumer credit, transportation, and industries tied to trade with China. According to CNBC's "Fast Money," traders shifted to gold and overseas assets because of the dollar's depreciation and market uncertainty. Even though some companies invested in the U.S., the S&P 500 and Nasdaq still declined, showing doubts about the policy outlook.

04/30 01:01

The United States and India reached a trade agreement for the first time, leading the Dow Jones Index to jump 300 points, and both TSMC's ADR and Tesla's stock prices increased.

On April 29, 2025, U.S. Secretary of Commerce, Lutnick, announced that the Trump administration had completed its first trade agreement, pending approval from the counterpart government, with India possibly being the partner. This news drove U.S. stocks higher, with the Dow Jones index rising by 300 points and the stock prices of TSMC ADR and Tesla also increasing. U.S.-China trade tensions intensified, with both sides imposing significant tariffs on each other. The U.S. imposed tariffs of up to 245% on Chinese goods, while China responded with retaliatory tariffs of 125% on U.S. goods.

04/29 23:01

The Dow Jones rose 300 points, achieving six consecutive days of gains, as the White House announced a trade agreement. In Trump's first 100 days, the stock market performance was the worst in half a century.

On April 29, 2025, the three major U.S. stock indices rose, with the Dow Jones climbing 300.03 points to 40,527.62, achieving a six-day winning streak. The S&P 500 Index and Nasdaq indices also rose for the sixth consecutive day. The White House announced a trade agreement with an undisclosed country and signed an executive order to lower automobile tariffs, boosting the stock market. Nevertheless, the stock market performance in the first 100 days of Trump's second term was the worst in fifty years, with significant declines in technology and small-cap indices, indicating internal market divisions.

04/29 22:32

US Ends Tax-Free Status for Chinese E-commerce: How Are Temu Orders Still Untaxed?

In April 2025, American consumers shopping on the Temu platform noticed that some orders were not subject to import fees, despite the Trump administration revoking the "de minimis" tax exemption for China and Hong Kong on May 2. This move drew attention as tariffs as high as 145% and import fees up to $200 per package are about to be implemented. The article explores the legal background of the U.S. "de minimis" system and how Chinese e-commerce platforms such as Temu and Shein have leveraged this system for cross-border sales, and analyzes the impact of these policy changes on their business models.

04/29 17:30

U.S. Treasury Secretary Mnuchin: Ordinary investors continue to hold stocks due to their trust in President Trump.

At a White House press conference on April 29, U.S. Treasury Secretary Scott Bessant stated that despite market fluctuations due to President Trump's high tariff policies, ordinary investors continue to hold their stocks, indicating their trust in Trump. Bessant cited data from Vanguard, noting that 97% of Americans refrained from stock trading during the first 100 days of Trump's presidency, which reflects confidence in his policies. Against this backdrop, the Trump administration is conducting trade negotiations with several countries and exerting pressure on China.

04/29 11:04

The Dow Jones Industrial Average surpassed 40,446 points, as the three major U.S. stock market indices rose simultaneously, fueled by strong corporate earnings and positive economic data.

On April 29, 2025, the three major U.S. stock market indices closed higher, with the Dow Jones Industrial Average closing at 40,446 points, the S&P 500 at 5,564.75 points, and the Nasdaq 100 at 19,577 points. The rally was driven by the market's focus on corporate earnings reports and economic data, despite mixed performance among tech stocks. The S&P 500 rose for the fifth consecutive day, marking its longest streak since November 2024. With earnings season at its peak, 180 S&P component companies are set to release their results, and the market remains cautious about the future outlook.

04/29 06:01

Trump's policy adjustment alleviates market pressure: European stock funds attract capital, U.S. tech earnings become the focus

President Trump's recent shift in stance on trade and monetary policy has eased global market tensions, resulting in significant changes in capital flows. European equity funds experienced a net inflow of $3.355 billion over the course of a week, indicating an increasing investor preference for regional diversification. U.S. tech giants are entering a busy earnings season, becoming the market focus. Even though many earnings reports exceeded expectations, market reactions have remained cautious due to persistent policy uncertainties. Investors are adjusting their asset allocation strategies to focus on industries with strong fundamentals.

04/29 03:06

U.S. stocks closing higher boosts investor confidence, Taiwan stocks fluctuate but maintain the 20,000-point level, and investors are focusing on earnings reports and economic data.

Following the major U.S. stock indices closing in the green, the Taiwan stock market turned positive after a slight dip in early trading on April 29th, with the index hovering around the 20,000-point mark. TSMC's stock price slightly declined, failing to continue the previous day's upward trend. Global market sentiment improved due to progress in tariff negotiations between the U.S. and several other countries, as investors focus on upcoming corporate earnings reports and U.S. economic data. Although market uncertainty persists, the overall atmosphere has stabilized compared to earlier periods.

04/28 10:00

After a 2,800-point rebound, US stocks face pressure from the seasonal moving average: AI demand, tariff policies, and US debt maturity are drawing market attention.

Recently, the US stock market rebounded by about 2,800 points, but it is approaching the resistance of the quarterly moving average, and market sentiment is cautious. Strong AI demand indicates that chip demand is outpacing supply, but tariff policy pressures are impacting the earnings reports of tech giants. The upcoming maturity of $6.5 trillion in US national debt has sparked debates on liquidity and debt sustainability. The trade and domestic policies from the Trump era are affecting investment confidence, boosting the performance of defense, aerospace, and cybersecurity stocks.

Ordinary Investors "Stay Put" as Treasury Secretary Expresses Trust in Trump

U.S. Treasury Secretary Scott Bessent stated at a White House press conference on April 29 that despite recent market turmoil, ordinary investors have chosen to stay put. He said, "Ordinary investors are staying put, while institutional investors are panicking... Ordinary investors trust President Trump."

Bessent cited a report from The Washington Post, noting that according to data from asset management company Vanguard, as many as 97% of American investors did not engage in any stock trading during the first 100 days of Trump's presidency. He emphasized that this phenomenon demonstrates retail investors' confidence in the Trump administration's economic policies, especially against the backdrop of market volatility triggered by tariff policies.

Tariff Policies Trigger Market Turmoil

On April 2, President Trump announced high tariffs on imports from multiple countries, with rates on some Chinese products reaching as high as 145%. This move triggered a sharp market reaction, with the S&P 500 index temporarily entering a bear market and recording the worst monthly decline since the COVID-19 pandemic in 2020. According to analysis by Fuh Hwa Securities Investment Trust, the U.S. and Taiwan stock markets fell 21% and 29% from their historical highs, respectively.

However, during the peak of market panic, retail investors went against the trend and entered the market. Bessent pointed out that these investors bought stocks when prices were low, in stark contrast to the massive withdrawals by hedge funds and professional traders at the same time.

Institutional Investors Concerned About Economic Recession

Unlike the steadfast attitude of retail investors, institutional investors have shown heightened alertness to Trump's trade policies. Torsten Slok, chief economist at Apollo Global Management, warned that with a significant reduction in U.S.-China trade volume, American store shelves might face supply shortages in the coming weeks, and the likelihood of an economic recession has risen to 90%. Jamie Dimon, CEO of JPMorgan Chase, stated that the best-case scenario might only be a "mild economic recession."

Additionally, companies like UPS have suspended financial forecasts due to "macroeconomic uncertainty," reflecting the business community's concerns about future economic trends.

Treasury Secretary: Uncertainty as a "Strategic Tool"

Bessent further stated at the press conference that President Trump deliberately creates "strategic uncertainty" in trade negotiations to secure more favorable terms. He said, "The level of uncertainty will decrease. We hope to achieve long-term tariff revenue and agreements."

He added that the U.S. is currently negotiating with at least 17 trade partners and is close to reaching an agreement with India, with negotiations also underway with South Korea and Japan. Bessent emphasized that these negotiations will help reposition the U.S. in global trade and reduce dependence on China.

Polls Show Divided Public Confidence

Despite the Treasury Secretary's emphasis on ordinary investors' trust in Trump, multiple polls show that Trump's economic policies are divisive among the public. According to a CNN survey, 59% of respondents believe Trump's policies have worsened the U.S. economy, while only 27% see improvement. Even a poll by conservative media Fox News shows Trump's overall approval rating at just 44%.

In swing states like Arizona, voters have expressed dissatisfaction with the inconsistency and uncertainty of tariff policies. Local fruit and vegetable importers noted that the frequent adjustments to tariff policies make it difficult for them to plan long-term, leading to supply constraints and price increases.

Market Reaction and Future Observations

Although the Trump administration has attempted to stabilize market sentiment by adjusting auto tariffs and promoting multilateral trade agreements, the market's response to its policies remains cautious. According to a report by Anue, JPMorgan analysts noted that while the market has recently rebounded, the negative impact of the trade war on the real economy may become apparent in the next 1 to 2 months.

Meanwhile, some market observers have pointed out that Trump's statements are losing their impact on the market. According to a report by United Daily News, investors are gradually becoming immune to Trump's "statements," and the market is more focused on the Federal Reserve's policy direction rather than the president's immediate remarks.

References

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