Ah, the financial markets. A bastion of logic, predictability, and calm, right? Not when Donald J. Trump is in the vicinity. The latest Google Alert entries paint a vivid picture of a market that, much like a teenager, is simultaneously celebrating a new relationship (with Japan) while throwing a tantrum over perceived slights (from the EU and China). It’s a delicate dance, or perhaps, a chaotic mosh pit, where every presidential pronouncement sends tremors, or sometimes, shrugs, through global equities.
Deals, Deals, Deals (and the Tariffs That Come With Them)
Let’s start with the good news, or at least, what passes for it in this administration. President Trump recently announced a trade deal with Japan, a move that sent U.S. stocks soaring. On Wednesday, July 23, 2025, the S&P 500 added 0.8% to hit an all-time high of 6,358.91, the Dow Jones Industrial Average rallied 507 points, or 1.1%, to 45,010.29, and the Nasdaq Composite climbed 0.6% to reach its own record of 21,020.02. Tokyo’s Nikkei 225, not to be outdone, surged 3.5% on the news. The cause for this jubilation? A new trade framework that would impose a 15% tariff on Japanese imports, a figure significantly lower than the 25% rate previously threatened. As Brian Jacobsen, chief economist at Annex Wealth Management, so eloquently put it, “It’s a sign of the times that markets would cheer 15 per cent tariffs. A year ago, that level of tariffs would be shocking. Today, we breathe a sigh of relief.” One can almost hear the collective sigh of relief from Japanese automakers like Toyota (+14%), Honda (+10%), and Nissan (+8%), whose stock prices rallied on the news.
However, the ink on that “massive” deal barely dried before the familiar drumbeat of tariff threats resumed. The European Union and Mexico, it seems, are still on the naughty list. President Trump stated there’s a “50/50 chance, maybe less than that” of a trade deal with the EU before the August 1st deadline, after which a delightful 30% tariff on imports from the bloc’s 27 member countries could kick in. This, naturally, has European markets feeling a bit queasy. On July 14, 2025, Germany’s benchmark DAX fell nearly 0.9%, while France’s CAC 40, Italy’s FTSE MIB, and Spain’s IBEX 35 were all down between 0.7% and 0.8%. The pan-European STOXX 600 index dipped about 0.5%. Analysts at Capital Economics noted that while a 15% baseline tariff on U.S. imports from the EU would be “hard to spin as a good deal,” it would at least “avoid much higher U.S. tariffs and retaliation from the EU.” The bar, it appears, has been set rather low.
And let’s not forget the auto industry, a perennial punching bag in the tariff saga. Volkswagen, for instance, has already taken a €1.3 billion hit from the “high costs” of Trump’s tariffs. The German automaker’s stock, VOWG, is currently trading at 102.50, up 2.91% recently, but has fallen by 5.04% over the last 12 months. This, despite the company’s CEO hoping for its “own tariff deal with attractive investments.” One might wonder if the “art of the deal” involves making things so bad that a slightly less bad outcome feels like a win.
The Truth About Truth Social and Tesla’s Twists
Beyond the grand stage of international trade, the digital playground of Truth Social continues to offer glimpses into the presidential mind, and sometimes, the market’s reaction to it. Elon Musk, ever the provocateur, found himself in a peculiar dance with Trump recently. After what appeared to be a peace offering from Trump, stating he wants Musk’s companies to “thrive like never before,” Musk swiped back, asserting he receives “no special subsidies.” This exchange, playing out on a platform owned by Trump himself, highlights the unique intersection of politics, personality, and public markets in this era.
Speaking of Musk’s ventures, Tesla (TSLA) had a bit of a rebound, gaining 4% on Friday after a sharp fall the previous day due to disappointing earnings. The stock is currently trading at $322.16, up 2.18% in the past 24 hours, but still down 3.02% compared to the previous week. Meanwhile, Intel (INTC) shares were down a rather significant 10% on Friday after the chipmaker reported a loss in the second quarter. INTC is currently trading at $20.60, a decrease of 9.41% in the past 24 hours. It seems even a presidential endorsement of AI development, as seen in a recent Google Alert, couldn’t save Intel from its earnings woes.
Analyst Angst and Market Myopia
Analysts, bless their hearts, are trying to make sense of it all. Many are adopting a “wait-and-see” approach, a strategy that sounds suspiciously like “we have no idea what’s going to happen next.” Andy Dyer, CEO of AFS, noted that “trade policy remains an unsettled picture and businesses are opting for a wait-and-see approach and delaying spending decisions.” This uncertainty, he suggests, is “as costly as the actual tariff rates.” Indeed, the global copper market is in “unprecedented turmoil” after a surprise 50% tariff on U.S. copper imports, leading to a dramatic 31% price differential between CME and LME prices. Apparently, even “Doctor Copper,” the metal known for predicting economic trends, is now suffering from policy-induced vertigo.
J.P. Morgan Global Research, ever the optimists, believes that while tariffs could reduce global GDP by 1% in the short term, the effective tariff rate might eventually settle around 15-18%. A “material upgrade” to growth forecasts and a reduction in core CPI could even occur if tariffs fall to roughly 5%. So, in essence, the market is hoping for a return to a slightly less tariff-laden normal, a kind of “new normal” where 15% tariffs are celebrated as a victory. The Federal Reserve, too, is caught in the crossfire, with President Trump “ratcheting up pressure” on Chairman Jerome Powell over interest rates and even bickering about Fed building renovations. Analysts expect the Fed to hold rates steady, even as inflation shows signs of rising in trade-sensitive categories due to tariffs.
The Art of the Unpredictable
In conclusion, the stock market under the influence of Donald Trump is less a predictable machine and more a live-action improv show. One moment, we’re celebrating a “deal” that still involves tariffs, the next we’re bracing for a trade war that could “disrupt essential transatlantic supply chains.” Volkswagen is losing billions, while Japanese automakers are popping champagne. Tesla is up, then down, then up again, mirroring the mercurial pronouncements from Truth Social. Analysts are left to ponder whether the calm before the storm is just a really long, awkward silence. It’s a testament to the market’s resilience, or perhaps its sheer exhaustion, that it continues to chug along, setting new records even as the policy landscape shifts faster than a chameleon on a plaid blanket. One thing is for sure: it’s never boring.
DISCLAIMER: We read Trump’s posts so you don’t have to. This is comedy meets market data, not financial advice. Not political advice either – we just like charts and chaos.
Elana Harper is a seasoned financial editor and market analyst with over a decade of experience covering global equities, economic trends, and corporate earnings. Known for her sharp insights, Elana specializes in making complex financial topics accessible to a broad audience. She now serves as the Senior Financial Editor at Stock Market Watch, where she oversees daily market coverage and political commentary.