Former President Trump is optimistic about the future of the U.S. economy and urges investors to buy stocks, taking advantage of trade agreement opportunities.

On May 9, 2025, former U.S. President Trump announced a trade agreement with the United Kingdom, stating that the U.S. economy would "soar like a rocket," urging investors to buy stocks. His promoted "Magnificent and Lavish Act" includes tax cuts, energy deregulation measures, and debt ceiling adjustments. Despite the market's impact from tariff policies, Trump's optimistic attitude and policy initiatives offer investors a fresh perspective.

Trump Proclaims: U.S. Economy Will "Rise Like a Rocket"

May 9, 2025, former U.S. President Trump announced at the White House, after reaching a trade agreement with the UK, "You should buy stocks now. This country is going to rise like a rocket." He further noted that this is just the first of many trade agreements, with more negotiations underway, emphasizing that "this is the beginning of America's golden age."

Trump's remarks are closely related to his recent economic policies. According to the World Journal, Trump is actively promoting a legislative plan he calls the "Massive Beautiful Bill," which includes extending the 2017 tax cuts, raising the debt ceiling, and loosening energy policies, aiming for passage before the U.S. Independence Day on July 4.

Tariff Policy and Trade Negotiation Progress

Trump's optimistic economic rhetoric aligns with his recent shifts in trade policy. After announcing on April 2 a maximum tariff of 145% on Chinese goods, global markets were significantly volatile, with the S&P 500 index dropping 10.5% in two days. However, as Trump reached a trade agreement with the UK in early May and hinted at possibly lowering tariffs on China, market sentiment gradually stabilized.

According to Yahoo Finance, Trump stated during the joint announcement with the UK Prime Minister, "This is just the start, and we have many more trade agreements underway." He also suggested that tariffs on China might be reduced from 145% to 80%. This shift is interpreted by the market as a potential "soft landing" phase for tariff policy.

Additionally, U.S. Treasury Secretary Scott Bessent is negotiating with Chinese officials in Geneva, stating that both sides have achieved "significant progress" and will establish a mechanism for economic and trade issue consultations.

Market and Corporate Earnings Reactions

Despite market fluctuations caused by Trump's policies and statements, corporate fundamentals are still strong. According to data from Franklin Templeton and FactSet, as of May 2, the S&P 500 companies' earnings are expected to grow by 9.5% this year, with tech stocks projected to grow by 18.4%. As of May 8, 90.2% of S&P 500 components have reported earnings, with 76.9% exceeding expectations, averaging a 12.3% annual increase.

The technology, healthcare, and communication services sectors performed particularly well, with first-quarter earnings growth rates of 17.5%, 42.7%, and 27.9%, respectively. These figures indicate that despite uncertainties from tariff policies, corporate profitability continues to support market fundamentals.

Investor Sentiment and Capital Movements

Trump's optimistic rhetoric and policy initiatives have encouraged some investors. According to the United Daily News, both the Taiwan and U.S. stock markets have recently seen capital inflows. In the U.S., tech stocks led the gains, with the Philadelphia Semiconductor Index rising 0.8% last week, and TSMC ADRs up 0.7%. In Taiwan, foreign investors have been net buyers for six consecutive days, with a cumulative net purchase amount of NT$116.8 billion.

However, overall market sentiment remains cautious. The latest Barron's survey shows that 32% of Wall Street fund managers are pessimistic about the market's trajectory over the next 12 months, the highest in nearly 30 years. The main reasons include uncertainties from Trump's tariff policies and the risk of a global economic slowdown.

Continuity of Trump's Economic Propositions

In his second term, Trump continues his "America First" economic propositions, emphasizing manufacturing repatriation and trade balance. He has stated, "If you want to produce overseas, you have to pay tariffs; if you produce in the U.S., you don't." This stance is also reflected in his policies on industries like pharmaceuticals and semiconductors, including signing executive orders to promote domestic drug manufacturing and easing FDA review processes.

Moreover, Trump has repeatedly expressed dissatisfaction with a strong dollar, believing it weakens U.S. export competitiveness. According to the China Times News Network, since Trump introduced "reciprocal tariffs," the dollar index has decreased by 5%. Although some economists express concern that this could trigger financial market turmoil, Trump administration members emphasize that this is to reestablish America's economic leadership.

Former President Trump is optimistic about the future of the U.S. economy and urges investors to buy stocks, taking advantage of trade agreement opportunities.

Key Updates

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