Trump and Musk reassure investors

The latest CNBC All-America Economic Survey found that Americans’ opinion of how U.S. President Donald Trump is managing the economy has plunged: For the first time since he entered the White House, more respondents disapprove than approve of the president on the economy.

Tesla CEO Elon Musk, who has been a significant contributor to the Trump administration, has also seen a decline in his and his company’s reputations. More than 47% of the American public view Tesla negatively, according to the same survey, compared with just 10% for General Motors. As for Musk himself, around half of the respondents see him in a disapproving light.

Markets, however, are open-minded and often react almost instantaneously to any positive changes. On Tuesday, Trump’s denial that he wishes to kick Federal Reserve Chair Jerome Powell out of office, and Musk’s clarification that he will be spending less time in Washington, D.C., were enough to send stock indexes and Tesla shares higher — even though the electric vehicle company’s first-quarter earnings missed expectations.

Though Cassio in Shakespeare’s play Othello describes reputation as “the immortal part” of himself, in the markets, the barometer for character tends to be more forgiving.

‘No intention’ of firing Powell: Trump
U.S. President Donald Trump has “no intention” of firing Federal Reserve Chair Jerome Powell, he told reporters on Tuesday. “None whatsoever,” Trump said in the Oval Office when asked to clarify that he did not seek Powell’s removal. “Never did.” That said, the president added that he “would like to see [Powell] be a little more active in terms of his idea to lower interest rates.”

‘De-escalation’ in U.S.-China trade war
Treasury Secretary Scott Bessent said in a closed-door meeting Tuesday he expects “there will be a de-escalation” in Trump’s trade war with China in the “very near future,” a person in the room told CNBC. Negotiating with China is likely to be “a slog,” Bessent said at a private investor summit hosted by JPMorgan Chase, but added that neither side “thinks the status quo is sustainable.”

Markets jump on promising news
U.S. markets rallied Tuesday on optimism after Trump backed off from his attacks on Powell and andBesent’s comments on trade negotiations with China. The S&P 500 rose 2.51%, the Dow Jones Industrial Average gained 2.66% and the Nasdaq Composite added 2.71%. The pan-European Stoxx 600 index climbed 0.25%. European Central Bank President Christine Lagarde told CNBC the disinflation process in the euro zone was “nearing completion.” March’s inflation reading was 2.2%.

Tesla’s earnings fall short
Tesla reported Tuesday first-quarter revenue and earnings that missed expectations. Total revenue slid 9% to $19.34 billion from $21.3 billion a year earlier. Net income plummeted 71% to $409 million, or 12 cents a share, from $1.39 billion or 41 cents a year ago. Analysts were expecting a revenue of $21.11 billion and a profit of 39 cents a share, according to LSEG data.

Musk says he will spend less time at DOGE
Despite Tesla’s disappointing earnings, which it announced after the bell, its shares popped more than 5% in extended trading. Investors could be cheering CEO Elon Musk’s statement that his time spent running Trump’s Department of Government Efficiency will drop “significantly” starting in May. As of Monday, Tesla shares were down 44% for the year, generating $11.5 billion in mark-to-market profits for Tesla shorts in 2025.

[PRO] Safe-haven currency amid flight from U.S.
As the U.S. dollar slides and the stock market whipsaws, investors are piling into one safe-haven currency. An exchange-traded fund linked to it has surged 8% in April, bringing its 2025 gains to 11%. Paul Feinstein, Audent Global Asset Management CEO, called the currency “one of the most enduring safe havens.”  

Chinese freight ship traffic to busiest U.S. ports sees steep drop

The pullback in trade between the U.S. and China as a result of President Trump’s steep tariffs on Chinese goods and fears of a recession are starting to show up in major ports data, with a steep drop in container vessel traffic headed to Los Angeles and Long Beach.

For the week ending May 3, the number of freight vessels leaving China and headed to the Southern California ports, the main U.S. ports receiving Chinese freight and other Asian trade, is down 29% week over week, according to Port Optimizer, a tracking system for ships. Year over year, the data shows a 44% drop in vessels scheduled to arrive the week of May 4-10.

Furthermore, the fallout from the ocean freight slowdown is beginning to hit ground transport linked to ports.