Squawk on the Street Rebound on Wall Street: Stocks Surge on Tariff Talk Hopes 4/8/25
Apr 8, 2025
Stocks are on the rise after a tough sell-off, fueled by optimism around U.S. tariff negotiations. President Trump's trade deal chatter with South Korea adds to the buzz, while China vows to push back against tariffs. Treasury comments hint at rising yields, and health insurer stocks are climbing thanks to Medicare rate hikes. Apple's plans to shift iPhone production to India showcase shifting supply chain strategies. The hosts break down market trends and share insights on the potential impacts of these trade dynamics.
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Pricing Power and Scale
- Current market conditions reward companies with pricing power and scale.
- These companies can pass on tariff surcharges or leverage their position with suppliers.
Two Market Perspectives
- Consider two market perspectives: potential trade deals leading to reduced uncertainty or prolonged negotiations causing a recession.
- Evaluate companies based on their ability to navigate uncertainty and potential slowdowns.
Tariff Impacts and Apple's Shift
- Tariffs on finished goods indirectly impact raw materials, making sourcing irrelevant.
- Apple's shift to India won't satisfy President Trump's desire for domestic production.