Squawk on the Street Markets and U.S.-U.K. Trade, Trump: "Powell Is a Fool," Arm Shares Slump 5/8/25
May 8, 2025
In this engaging discussion, Harley Finkelstein, President of Shopify, shares insights on the evolving U.S.-U.K. trade relationship and the impact of tariffs on e-commerce. He explores how merchants can adapt to macroeconomic changes amid rising tensions, particularly following Trump’s provocative comments about Jerome Powell and the Fed's interest rate stance. The conversation also touches on market reactions to Arm Holdings’ weak guidance, underscoring the challenges faced by tech companies in this shifting landscape.
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US-UK Trade Framework Outlook
- The US-UK trade announcement is more of a framework than a full deal, aimed at easing tariff tensions rather than abolishing them outright.
- Markets are reacting to the promise of de-escalation, but the real effects depend on further negotiations.
Trump Criticizes Fed Chair Powell
- President Trump criticized Jerome Powell sharply the day after the Fed held rates steady.
- This reflects ongoing tension around Federal Reserve policy and market expectations.
Market Reaction to Trade and Labor Data
- Markets respond positively to incremental progress on trade de-escalation and remain focused on the April 2nd S&P 500 peak.
- Labor market strength underpins cautious optimism despite uncertainty.