Trump’s Trade & AI Boom Sends Dow Jones, S&P 500 Soaring—Wall Street Bites Its Lip

Markets shrug off political whiplash as Trump's latest policy cocktail—half trade war, half AI moonshot—fuels another rally. Because nothing says 'stable economy' like betting on both tariffs and sentient algorithms.

Dow, S&P ride the policy rollercoaster

Investors piled into equities despite the cognitive dissonance of protectionism paired with tech deregulation. The old rules? Suspended—just like critical thinking when quarterly targets are at stake.

AI sector feasts on regulatory easing

Machine learning stocks led the charge after whispers of loosened development constraints. Because if there's one thing Silicon Valley loves more than disruption, it's Uncle Sam looking the other way on ethics audits.

Wall Street's latest Faustian bargain: cheering economic nationalism while simultaneously banking on borderless digital infrastructure. The hedge funds? Already placing bets on which contradiction implodes first.

Markets rallied on news that, after months of talks, the U.S. and Japan agreed on a trade deal. The new deal will impose a 15% tariff on goods imported from Japan to the U.S., lower than the 25% that President Donald TRUMP threatened earlier. Tariffs will be reciprocal, and Japan will open up its market to U.S. goods, including cars, trucks, and rice.

At the same time, Reuters reported that the U.S. and the EU are approaching a similar deal, also with a similar 15% rate. Both the U.S. and the EU WOULD eliminate tariffs on certain products, including medical devices, aircraft, and spirits.

This news follows a series of mutual threats between the two trading blocs. Earlier, the EU threatened a €100 billion no-deal plan, targeting specific goods such as aircraft and whiskey. This was a response to Trump’s threats of flat 30% tariffs on EU goods.

Trump unveils AI plan, breaking with Biden’s policies

Trump also unveiled an AI “action plan”, detailing the administration’s approach to the artificial intelligence sector. The plan broke with former President Joe Biden’s policy of limiting exports of advanced AI chips, and ensuring that AI should not display bias.

Instead, Trump’s policy places restrictions on AI models with “ideological biases” specifically built-in by its developers. The change could impact Elon Musk’s Grok, which frequently comes under fire for controversial and racist responses, as well as allegations of direct tampering with its results.