CNBC Daily Open: Trump and Musk reassure investors, sending stocks higher

President Donald Trump and Elon Musk were in attendance at UFC 314 held at the Kaseya Center in downtown Miami on Saturday, April 12, 2025.

According to the latest CNBC All-America Economic Survey, Americans’ perception of President Donald Trump’s handling of the economy has taken a dive. For the first time since he took office, more respondents disapprove of the president’s economic management compared to those who approve.

Elon Musk, the CEO of Tesla and a key figure in the Trump administration, has also experienced a decline in both his and his company’s reputation. The survey revealed that over 47% of the American public view Tesla negatively, while only 10% hold a negative view of General Motors. Additionally, around half of the respondents have an unfavorable opinion of Musk himself.

Despite Tesla’s first-quarter earnings falling short of expectations, positive news from President Trump denying any intention to remove Federal Reserve Chair Jerome Powell and Elon Musk’s announcement of reduced time spent in Washington, D.C. caused stock indexes and Tesla shares to rise.

While reputation is often viewed as invaluable, the market’s assessment of character tends to be more lenient.

Key Updates:

– President Trump stated he has no plans to dismiss Federal Reserve Chair Jerome Powell, but emphasized his desire for lower interest rates.
– Treasury Secretary Scott Bessent anticipates a de-escalation in the U.S.-China trade war in the near future, leading to market optimism.
– U.S. markets surged following positive news, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all experiencing gains.

Other news included Tesla’s disappointing first-quarter earnings, Musk’s announcement of reduced involvement in the Department of Government Efficiency, and the rise of a safe-haven currency amidst economic uncertainties.

Lastly, there has been a significant drop in Chinese freight ship traffic to major U.S. ports, likely influenced by the trade tensions between the U.S. and China and concerns of a looming recession.