Market rallies despite Trump’s tariff hike: can Musk’s budget warning shake investors?

This report covers Musk’s scathing critique of the Trump-backed $2.5 trillion spending bill and its potential to deepen America’s debt crisis, alongside the White House’s tariff escalation and its mixed impact on markets, including a notable rise in Nvidia shares and the Dow Jones. Explore how these tensions between Musk and Trump could influence political and economic landscapes ahead.

Sources:
NPR
Updated 3h ago
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Sources: NPR
The stock market rallied on Tuesday despite President Donald Trump’s announcement to double steel and aluminum tariffs to 50%, with the Dow Jones Industrial Average rising 0.5% and Nvidia shares climbing 2.8% to their best close since late January.

However, billionaire entrepreneur Elon Musk sharply criticized the Trump administration’s recently passed tax-and-spending package, calling it a "massive, outrageous, pork-filled Congressional spending bill" and a "disgusting abomination." Musk warned that the budget would "massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America citizens with crushingly unsustainable debt."

Musk, who served in the Trump administration until recently, expressed growing discontent with the administration, signaling a widening rift. He further stated, "In November next year, we fire all politicians who betrayed the American people."

Despite these warnings, the market showed resilience, with major indexes recovering after an initially mixed open. The Dow Jones climbed back above its 200-day moving average, and Nvidia’s stock surged 2.8% to $141.22, surpassing the $137.40 level.

"This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on you who voted for it," Musk wrote on his social platform.

"The Trump budget will massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America citizens with crushingly unsustainable debt," he added.

The market’s positive reaction despite tariff hikes and Musk’s budget warnings highlights investor confidence amid political and economic tensions.

Sources: NPR
Despite President Trump’s tariff hike doubling steel and aluminum tariffs to 50%, the stock market rallied, with the Dow Jones rising 0.5% and Nvidia shares hitting their best close since January. Meanwhile, Elon Musk sharply criticized the Trump administration’s budget, warning of a $2.5 trillion deficit and unsustainable debt.
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"This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on you who voted for it."
Elon Musk
CEO of Tesla and SpaceX
NPR
"In November next year, we fire all politicians who betrayed the American people."
Elon Musk
CEO of Tesla and SpaceX
NPR
Key Facts
  • Elon Musk sharply criticized the Trump-backed tax-and-spending package as a "disgusting abomination" and warned it would increase the budget deficit to $2.5 trillion.NPR
  • Musk voiced concerns about the tax-and-spending package in recent days before escalating to harsh criticism, signaling a widening rift with President Trump.NPR
  • The White House announced that President Trump would sign an order doubling steel and aluminum tariffs to 50%, impacting market sentiment.NPR
  • The stock market rallied with the Dow Jones rising 0.5% and Nvidia stock closing at its best level since late January, up 2.8% to 141.22.NPR
Key Stats at a Glance
Projected budget deficit due to Trump budget
$2.5 trillion
NPR
Steel and aluminum tariff increase
50%
NPR
Dow Jones Industrial Average rise
0.5%
NPR
Nvidia stock price increase
2.8%
NPR
Nvidia stock closing price
141.22$
NPR
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