Wall Street has closed with falls this Thursday, led by the Nasdaq (Dow Jones: -0.84%; S&P500: -1.12%; Nasdaq: -1.90%), As investors remain vigilant future of reciprocal tariffs of Donald Trump, after the US Supreme Court has shown his skepticism about legality of the president’s trade policy. On the other hand, eyes are also on teslawhich holds its General Meeting of Shareholders with the Elon Musk salary package as protagonist. «The Supreme Court hearing reignited the debate over the legality of Trump’s tariffs. Half of the six justices in the supermajority, appointed by the Republican Party, were skeptical of the arguments defending the high and widespread tariffs imposed by Trump on the rest of the world. Therefore, Yesterday’s hearing suggested Trump’s tariffs could be reversed«, indicates Ipek Ozkardeskaya, senior analyst at Swissquote Bank. In this regard, the strategist wonders if this is good news. «Paradoxically, not entirely, because generate uncertainty, greater volatilitythe possibility that the US government will owe more than $100 billion in refunds to other countries, according to Bloomberg, and an even larger fiscal deficit. This is worrying, especially considering that US debt has already exceeded $38 trillion and is heading towards the psychological threshold of $40 trillionwith no brake on this trend in sight,» he explains. For Link Securities experts, «the fact that several of the judges on the conservative wing of the Supreme Court were skeptical about President Trump’s use of the aforementioned law and that some even classified the tariffs as taxes on American citizens, something that only Congress can impose, radically changed expectations regarding a potential ruling by the highest court in this regard. increasing the likelihood that it will be contrary to the interests of the US Government«.
MUSK’S SALARY PACKAGE, TO VOTE
tesla also focuses the attention of investors this Thursday, as it holds a meeting that seems key to the future of Elon Musk and, therefore, of the electric vehicle manufacturer. And the shareholders must vote on the CEO’s billion-dollar salary compensation package which, if not approved, could cause your departure from the company. «All eyes are now on November 6, when investors will vote on the most ambitious pay package Musk has offered yet. This will be a key turning point, as a yes vote will guarantee Musk’s continuity at Tesla during what is likely to be one of the most important periods in the company’s history,» says Matt Britzman, senior equity analyst at Hargreaves Lansdown.
Norges Bank Investment Management (NBIM)manager of the investment vehicle valued at 2 billion dollars and relevant shareholder of the electric vehicle manufacturer, has confirmed that will vote against of the salary plan. In this way, the fund joins the criticism of advisory firms such as Institutional Shareholder Services and Glass Lewisas well as the campaign Take Back Teslaa coalition of unions and corporate watchdog groups urging shareholders to block pay.
WITH THE FOCUS ON THE FED
The attention of the day has also fallen on the members of the Fed, in search of clues about the next meeting. The governor Stephen Miran has opted this Thursday for a new cut in interest rates in December.
«Wait a rate cut in December, barring any surprises. The distribution of votes in the round table is different from the distribution of opinions. Therefore, based on current information, I predict that we will end up cutting in December, but in the end nothing is guaranteed,» he said. However, the president of the Chicago Federal Reserve, Austan Goolsbee has expressed doubts about the possibility that the US central bank will continue cutting interest rates in the absence of official inflation data due to the government shutdown. ««I’m more inclined to be a little careful and slow down when it’s foggy.».
COMPANIES AND OTHER MARKETS
At the business level, Snap has shot up 9.79% after its quarterly results and announcing a share buyback worth 500 million dollars. In other markets, oil West Texas has risen 0.08% ($59.64) and the Brent has advanced 0.12% ($63.59). For his part, the euro has appreciated 0.47% ($1.1545), and the ounce of gold has lost 0.03% ($3,991). Furthermore, the 10-year American bond yield has relaxed to 4.089% and the bitcoin has lost 3.03% ($100,780).
