The Dictatorship
Stock market today: Wall Street hits records despite tariff talk
By STAN CHOE
NEW YORK (AP) — U.S. stocks rose to records Tuesday after Donald Trump’s latest talk about tariffs created only some ripples on Wall Street, even if they could roil the global economy were they to take effect.
The S&P 500 climbed 0.6% to top the all-time high it set a couple weeks ago. The Dow Jones Industrial Average added 123 points, or 0.3%, to its own record set the day before, while the Nasdaq composite gained 0.6% as Microsoft and Big Tech led the way.
Stock markets abroad mostly fell after President-elect Trump said he plans to impose sweeping new tariffs on Mexico, Canada and China once he takes office. But the movements were mostly modest. Stock indexes were down 0.1% in Shanghai and nearly flat in Hong Kong, while Canada’s main index edged down by less than 0.1%.
Trump has often praised the use of tariffsbut investors are weighing whether his latest threat will actually become policy or is just an opening point for negotiations. For now, the market seems to be taking it more as the latter.
AP AUDIO: Stock market today: Wall Street hangs near its records despite tariff talk
The AP’s Seth Sutel reports Wall Street hangs near its records despite tariff talk.
The consequences otherwise for markets and the global economy could be painful.
Unless the United States can prepare alternatives for the autos, energy products and other goods that come from Mexico, Canada and China, such tariffs would raise the price of imported items all at once and make households poorer, according to Carl Weinberg and Rubeela Farooqi, economists at High Frequency Economics.
They would also hurt profit margins for U.S. companies, while raising the threat of retaliatory tariffs by other countries. And unlike tariffs in Trump’s first term, his latest proposal would affect products across the board.
General Motors sank 9%, and Ford Motor fell 2.6% because both import automobiles from Mexico. Constellation Brands, which sells Modelo and other Mexican beer brands in the United States, dropped 3.3%. The value of the Mexican peso fell 1.8% against the U.S. dollar.
Beyond the pain such tariffs would cause U.S. households and businesses, they could also push the Federal Reserve to slow or even halt its cuts to interest rates. The Fed had just begun easing its main interest rate from a two-decade high a couple months ago to offer support for the job market. While lower interest rates can boost the economy, they can also offer more fuel for inflation.
“Many” officials at the Fed’s last meeting earlier this month said they should lower rates gradually, according to minutes of the meeting released Tuesday afternoon.
The talk about tariffs overshadowed another mixed set of profit reports from U.S. retailers that answered few questions about how much more shoppers can keep spending. They’ll need to stay resilient after helping the economy avoid a recession, despite the high interest rates imposed by the Fed to get inflation under control.
A report on Tuesday from the Conference Board said confidence among U.S. consumers improved in November, but not by as much as economists expected.
Kohl’s tumbled 17% after its results for the latest quarter fell short of analysts’ expectations. CEO Tom Kingsbury said sales remain soft for apparel and footwear. A day earlier, Kingsbury said he plans to step down as CEO in January. Ashley Buchanan, CEO of Michaels and a retail veteran, will replace him.
Best Buy fell 4.9% after likewise falling short of analysts’ expectations. Dick’s Sporting Goods topped forecasts for the latest quarter thanks to a strong back-to-school season, but its stock lost an early gain to fall 1.4%.
Still, more stocks rose in the S&P 500 than fell. J.M. Smucker had one of the biggest gains and climbed 5.7% after topping analysts’ expectations for the latest quarter. CEO Mark Smucker credited strength for its Uncrustables, Meow Mix, Café Bustelo and Jif brands.
Big Tech stocks also helped prop up U.S. indexes. Gains of 3.2% for Amazon and 2.2% for Microsoft were the two strongest forces lifting the S&P 500.
All told, the S&P 500 rose 34.26 points to 6,021.63. The Dow gained 123.74 to 44,860.31, and the Nasdaq composite climbed 119.46 to 19,174.30.
In the bond market, Treasury yields held relatively steady following their big drop from a day before driven by relief following Trump’s pick for Treasury secretary.
The yield on the 10-year Treasury inched up to 4.29% from 4.28% late Monday, but it’s still well below the 4.41% level where it ended last week.
In the crypto market, bitcoin continued to pull back after topping $99,000 for the first time late last week. It’s since dipped back toward $91,000, according to CoinDesk.
It’s a sharp turnaround from the bonanza that initially took over the crypto market following Trump’s election. That boom had also appeared to have spilled into some corners of the stock market. Strategists at Barclays Capital pointed to stocks of unprofitable companies, along with other areas that can be caught up in bursts of optimism by smaller-pocketed “retail” investors.
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AP Business Writer Elaine Kurtenbach contributed.
A Republican congressional candidate Jackson Lahmeyer has dropped out of a runoff for a U.S. House in Oklahoma following reports that he had sent intimate text messages to a woman who was not his wife.
“After prayerful consideration with my wife, Kendra, and my team over the last twenty four hours, I’ve made the difficult decision to suspend my campaign for Congress,” Lahmeyer, a candidate for Oklahoma’s 1st Congressional District, said in a statement Wednesday.
“I do not want to be a distraction to my family, my church, and the great people of Oklahoma’s 1st Congressional District, who deserve a strong conservative voice representing them in Washington,” he added.
President Donald Trump initially endorsed Lahmeyer, whom he called a “MAGA Warrior,” in May but withdrew his support following the controversy. Soon after, Trump endorsed Lahmeyer’s opponentMark Tedford, who now becomes the Republican nominee by default.
“I greatly appreciate Jackson Lahmeyer’s hard work under difficult circumstances — He has always been with me, and I will always be with him,” Trump wrote on Truth Social Wednesday. “But, when it comes to the current Congressional race for Oklahoma’s 1st Congressional District, I will be supporting America First Patriot, Mark Tedford. Mark is Pro Trump and MAGA all the way!”
Lahmeyer, a pastor Sheridan Church in Tulsa, centered his congressional campaign around his Christian faith.
Lahmeyer dropped out of the race after the Daily Mail reported Sunday that he had exchanged numerous romantic text messages with Caitlin Simmons Key, who worked as a fundraiser for his campaign. In one text message obtained by the Daily Mail, Lahmeyer allegedly invited Key into his hotel room. Key also alleged that Lahmeyer once professed his love to her.
“There’s a real problem with the fact that he’s married and a pastor,” Key told the outlet. “There is a responsibility when you are leading people in the name of Christ to hold yourself to a higher standard.”
Erum Salam is a breaking news reporter for MS NOW, with a focus on how global events and foreign policy shape U.S. politics. She previously was a breaking news reporter for The Guardian.
President Donald Trump has digitally signed the memorandum of understanding with Iran while at dinner in Versailles with French President Emmanuel Macron, Pakistani Prime Minister Shehbaz Sharif announced Wednesday.
Iranian President Masoud Pezeshkian also digitally signed the memo, according to Sharif.
The agreement between the United States and Iran establishes a framework for negotiations aimed at permanently ending the conflict, which began when Trump and Israeli Prime Minister Benjamin Netanyahu directed a joint attack on Iran on Feb. 28.
Sharif said in a statement the agreement now goes into “immediate effect.” He noted that the first steps are for Tehran to “instantly reopen” the Strait of Hormuz and for the U.S. to “immediately lift” its naval blockade against Iran in the strait.
“The signing of this agreement at the highest level of the respective governments demonstrates the commitment of both sides to a diplomatic resolution of the conflict,” Sharif said in a statement.
Officials will hold a formal signing ceremony in Switzerland on Friday, Sharif said. A U.S. official did not respond to MS NOW’s questions on if an official document of the agreement will be released to the public.
According to the memothe U.S. and Iran have agreed to finalize a deal within 60 days, “extendable with mutual consent.” The agreement also calls for an “immediate and permanent termination of military operations on all fronts, including in Lebanon.”
Despite the memo’s explicit inclusion of Lebanon, Israeli leaders and U.S. officials continue to offer conflicting views on how that will be implemented. U.S. Ambassador to Israel Mike Huckabee said Israel’s war against the Iran-backed militant group Hezbollah is not part of the agreement, while Netanyahu vowed to remain in “security zones” in southern Lebanon.
Iran has also reaffirmed that it would not “procure or develop nuclear weapons,” which was a central issue Trump cited when defending the conflict in Iran. Both the U.S. and Iran also agreed to discuss how Tehran will dispose of its highly enriched uranium stockpile, with supervision from the U.S. and the International Atomic Energy Agency.
The agreement also includes an end to the U.S.’ naval blockade against Iran in the Strait of Hormuz, one of the world’s most important maritime trade routes, with a goal of restoring pre-war maritime traffic to the region.
“May this Memorandum of Understanding serve as an enduring foundation for greater understanding, mutual respect and shared prosperity for the complete region,” Shebaz said.
Emily Hung is an associate White House producer for MS NOW.
Erum Salam is a breaking news reporter for MS NOW, with a focus on how global events and foreign policy shape U.S. politics. She previously was a breaking news reporter for The Guardian.
The Dictatorship
The more Senate Republicans learn about Trump’s Iran deal, the more they don’t like it
Republicans started the week on Capitol Hill already uneasy about President Donald Trump’s still unreleased plan to end the U.S.-Iran war.
But by Wednesday, as details of the memorandum of understanding finally began to emerge, the unease turned into outright opposition.
“This is the worst foreign policy blunder in decades,” Sen. Bill Cassidy, R-La., posted online.
Cassidy, who recently lost his re-election bid to a Trump-backed primary challenger, said that under the memorandum, “Iran’s nuclear ambitions were not curbed, and they have learned that threatening the Strait of Hormuz works and will undoubtedly leverage it in the future.”
“Now, Iran gets to build brand-new infrastructure under this deal,” he added.
Sen. Thom Tillis, R-N.C., who is not seeking re-election, argued the memorandum falls short given the costs of the conflict.
“We’ve lost two F-18s, several other air frames, 13 people have died, several of our Middle East partners have been attacked, 365 people have been injured,” Tillis told MS NOW, adding that the the U.S. had spent “$100 billion has been spent since the first kinetic strike.”
“I need more than 14 [bullet] points,” he said.
He later added that anyone who “is gushing over it being a great plan, I think, have insufficient information. Anybody complaining that it’s a bad plan, have insufficient information.”
According to a senior U.S. official, the memorandum — signed by President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad-Bagher Ghalibaf — outlines a list of commitments as the two sides kick off 60 days of negotiations on a final deal.
In addition to the U.S. ending its naval blockade and the Iranians reopening the Strait of Hormuz, the memorandum calls for the U.S. to take steps to “terminate all types of sanctions against the Islamic Republic of Iran.”
It calls for the U.S. to work with other Middle East partners to “develop a definitive, mutually agreed plan with at least $300 billion for the reconstruction and economic development of the Islamic Republic of Iran.” And the MOU says that “Iran will maintain the current status quo of its nuclear program, and the United States of America will not impose any new sanctions and will not deploy additional forces in the region.”
In particular, the $300 billion proposal is the source of GOP angst — even from some of the president’s fiercest defenders.
“History teaches that giving billions of dollars to theocratic lunatics who want to murder us is not a good idea,” Sen. Ted Cruz, R-Texas, told reporters. “I think the president is receiving some very poor advice on this deal.”
His Texas colleague, Republican Sen. John Cornyn, told MS NOW, “I don’t like that part of the deal.”
He noted, “The president has the authority to negotiate,” but he added that Congress should have an “oversight role.”
While some Republicans were outright critical, many others tried a more tactful approach. Many said they were still waiting for more information.
Sen. Todd Young, R-Ind., told MS NOW he needed to “see the details” before really commenting on the emerging deal. But when pressed on some of the leaked details, he said the U.S. needed to “tighten the thumb screws if we want to get the sort of concessions required to secure or remove the nuclear material.”
Asked about the $300 billion reconstruction fund for Iran, which is supposed to be paid for by private investments from other countries, Sen. Lisa Murkowski, R-Alaska, said she was waiting to hear about a “corresponding win” for the U.S.
She said she wanted the Trump administration to present the deal to lawmakers “with an opportunity for us to actually ask those questions.”
And Senate Majority John Thune, R-S.D., who told reporters Wednesday that he still had not seen the final text, said, “There’s a bunch of things in here that I think we’re going to have questions about.”
“I need to hear more about it, and what the ideas are for implementation, and what the enforcement compliance mechanisms are,” he said.
To be sure, only a handful of Republicans directly praised the memorandum. Sen. Bernie Moreno of Ohio, told MS NOW he was “very happy” with the deal.
“I think it’s historic,” he said.
And Sen. Tommy Tuberville, R-Ala., told MS NOW he “would think” the memorandum is better than the Iran nuclear deal crafted during the Obama presidency.
But most Republicans approached by MS NOW insisted they had not yet seen the memorandum and therefore wanted to refrain from comment — even when MS NOW pressed about the topline aspects of the plan, like sanctions relief and the potential for $300 billion in assistance.
“Haven’t had a chance to read it yet. I’m sorry,” said Sen. Cynthia Lummis, R-Wyo.
“I’m not going to comment if I haven’t read it,” said Sen. John Curtis, R-Utah.
“I don’t know what’s in it yet, and that’s critical,” Sen. Susan Collins, R-Maine, told MS NOW. “I haven’t had a classified briefing yet, and that’s critical.”
But as Republicans learn more details about the agreement, reactions generally haven’t been positive. After spending years blasting the Obama-era Iran nuclear deal — particularly for the agreement sending “pallets of cash” to the Iranian regime — Republicans may have trouble swallowing some of the concessions in this agreement, even if it’s just a temporary deal paving the way to a larger pact in 60 days.
As Democrats have been pointing out, it will be practically more difficult for Trump to walk away from negotiations in August, with the pressure of midterms increasing and the prospect of higher gas prices more daunting.
In general, Democrats have cast the memorandum as an “abject failure,” though they’ve couched that disappointment with an insistence that they’re happy about a potential end to hostilities.
Sen. Tim Kaine, D-Va., who in recent months has spearheaded a Democratic effort to curtail the president’s war powers in Iran, said it sounded like “we’re giving a lot more to get a lot less than we got in the JCPOA” — a reference to the Obama-era deal, which was formally named the Joint Comprehensive Plan of Action.
Sen. Chris Coons, D-Del., told MS NOW that “by virtually every goal that President Trump announced when this war began” — from regime change to cutting off Iran’s support for its proxies in the region to collecting the country’s nuclear material — “he’s failed.”
In particular, Coons took issue with the proposed sanction relief and the $300 billion for reconstruction, likening it to “rivers of cash to help the mullahs not just rebuild Iran but to build a stronger Iran.”
“I hope — but do not expect — to hear from my many colleagues who denounced the JCPOA as funneling ‘pallets of cash’ to Iran to similarly denounce this deal,” Coons said.
Trump has left himself some latitude on the deal — at least on the potential blame for a bad agreement.
On Wednesday, as he faced questions in France over the pending MOU, he explained why he continued to present Vance as a key negotiator of the deal.
“This way, if it works out, I’m going to take the credit,” Trump said. “If it doesn’t work out, I’m blaming JD.”
Julia Jester, Lillie Boudreaux, and Mychael Schnell contributed to this report.
Kevin Frey is a congressional reporter for MS NOW.
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