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.

Taiwan • Business • 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.

Key Updates

04/30 18:00

Eurozone's GDP increased by 0.4% in the first quarter, exceeding expectations, leading to a rise in European stocks; U.S. economy shrinks unexpectedly by 0.3%.

In the first quarter of 2025, the Eurozone's GDP increased by 0.4% from the previous quarter, exceeding expectations and boosting European stock markets. The U.S. GDP contracted by an annualized 0.3%, marking the first decline in three years, due to an increase in imports and a decrease in government spending. The Eurozone economy continued to grow with support from multiple countries, while the U.S. economy was under pressure due to a widening trade deficit and sluggish job growth.

04/30 15:30

The U.S. GDP shrinkage in the first quarter has led to stock market volatility, and 360,000 Taiwanese mothers are facing the risk of depression.

In the first quarter of 2025, the US GDP declined at an annualized rate of 0.3%, missing the expected 0.4% growth, causing a drop in the three major US stock indices. The Dow Jones dropped 237 points, the S&P 500 fell 61 points, and the Nasdaq plunged 361 points. A survey in Taiwan indicates that about 360,000 mothers exhibit signs of depression, highlighting the pressures from family and society. This article examines US economic data and market reactions, connecting them to the current situation of maternal stress in Taiwan, offering a comprehensive view of the intersection between global economics and mental health.

04/30 13:03

The 'Big Seven' U.S. Tech Giants Stock Rebound Falters: Profit Growth Slows for Companies Such as Microsoft

At the beginning of 2025, the "Seven Giants," a group of American tech giants, saw a rebound, but the latest financial reports show slower profit growth, rising valuation pressure, and a blow to market confidence. Microsoft's earnings report exceeded expectations, but its stock price fell due to a decline in free cash flow margin and uncertainty about AI investment returns. The "Seven Giants" overall profit growth rate fell from 52% in 2024 to 21.4% in 2025. Investors' risk appetites have shifted, with funds moving into gold and other sectors, and analysts are split on their ratings of the "Seven Giants."

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.

U.S. Completes First Trade Agreement, India Likely First Candidate

U.S. Commerce Secretary Lutnick stated on April 29 that the Trump administration has completed its first trade agreement, pending approval from the prime minister and parliament of the other country. He did not disclose the specific country but noted that the agreement is "completed" and expected to be approved soon. U.S. Treasury Secretary Scott Bessent also mentioned that the U.S.-India trade agreement is "very close to completion," and India might be one of the first countries to sign the agreement.

President Trump also stated to the media outside the White House, "I think we will reach an agreement with India." He mentioned that Indian Prime Minister Modi visited the White House three weeks ago, and both parties are eager to advance the agreement. Besides India, Bessent also revealed that trade negotiations with Japan and South Korea are ongoing, with an "agreement framework" taking shape with South Korea and "substantial content" in talks with Japan.

Stock Market Immediate Reaction: Dow Soars, Tech Stocks Mostly Close Higher

The news of the trade agreement's progress boosted U.S. stocks across the board. At the close on April 29, the Dow Jones Industrial Average rose 300.03 points, or 0.75%, to 40,527.62 points, reaching a three-week high and marking the sixth consecutive day of gains. The S&P 500 Index rose 32.08 points, or 0.58%, to 5,560.83 points; the Nasdaq Index rose 95.19 points, or 0.55%, to 17,461.32 points.

The Philadelphia Semiconductor Index, however, fell 38.87 points, or 0.92%, to 4,196.75 points, reflecting mixed performance in chip stocks.

In individual stocks, Tesla's share price rose $6.15, or 2.15%, to $292.03. TSMC ADR rose $1.08, or 0.66%, to $164.48, making it the best performer among the components of the Philadelphia Semiconductor Index. NVIDIA saw a slight increase of $0.29, or 0.27%, closing at $109.02.

U.S.-China Trade Conflict Escalates with High Tariffs

Despite progress in trade negotiations with some Asian countries, the trade conflict with China continues to escalate. According to the U.S. Treasury Department and multiple media reports, the total tariffs imposed by the U.S. on Chinese imports have reached 145%, with some items accumulating tariffs as high as 245%. China, in turn, has imposed retaliatory tariffs of 125% on U.S. goods.

These high tariffs have significantly impacted bilateral trade. According to Bloomberg, since the U.S. announced the "U.S. Liberation Day" tariff policy on April 2, the freight volume between the U.S. and China has significantly declined, with an estimated drop of 60%. U.S. Treasury Secretary Bessent noted that if tariffs continue, China could lose up to 10 million jobs.

Additionally, the U.S. has adjusted its tariff policy on the automotive industry. President Trump signed an executive order on the 29th allowing manufacturers producing cars in the U.S. to be exempt from some of the newly imposed 25% auto tariffs, allowing time for parts supply chains to be relocated back to the U.S. This move is seen as a short-term relief measure for automakers.

TSMC and Tesla Stock Prices Rise in Tandem

Driven by trade agreement news and policy adjustments, both TSMC and Tesla stock prices have risen. TSMC ADR increased by 0.66%, closing at $164.48, equivalent to approximately NT$1,060.21 in the Taiwan stock market. Tesla's stock price rose by 2.15%, closing at $292.03, the largest increase among the seven major tech companies.

Tesla's stock price has been volatile recently, despite a 13% year-over-year decline in first-quarter deliveries. However, market expectations for CEO Elon Musk's return to focus on company operations and the Trump administration's adjustment of auto parts tariffs have become short-term factors driving the stock price up.

U.S. Engages in Negotiations with Multiple Countries, China Not Included in First Wave

According to the U.S. Treasury Department, the U.S. is currently negotiating with at least 17 trade partners, aiming to replace high tariff policies with bilateral trade agreements. India, Japan, and South Korea are the fastest progressing targets. China is not included in the first wave of negotiations, indicating that trade tensions between the U.S. and China have not eased.

U.S. Treasury Secretary Bessent stated that the responsibility to remove tariffs lies with China, as China's exports to the U.S. far exceed U.S. exports to China. He emphasized, "These tariffs imposed by China are unsustainable."

References

People Also Ask...

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