Howard Lutnick Confuses the Markets
Author: Greg Valliere
March 5, 2025
IT’S TOUGH ENOUGH FOR THE MARKETS to navigate tariffs, a budget crisis, massive layoffs, etc. Now the markets have to pay close attention to the bombastic Commerce Secretary, Howard Lutnick.
AT THE END OF ANOTHER BRUISING DAY FOR THE STOCK MARKET, investors were stunned by comments from Lutnick, who suggested that a compromise is possible on tariffs.
LUTNICK SAID ON FOX NEWS THAT THE U.S. MAY “WORK SOMETHING OUT” in the middle, whatever that means. But when he speaks, investors have to pay close attention — they did yesterday, propelling stocks to a huge (and brief) rally.
THIS WILL BE A PERSISTENT CONCERN FOR THE STOCK MARKET, as Cabinet members like Lutnick free-lance, making proclamations that have to be walked back. Or maybe there is a tariff deal brewing — that’s impossible to call accurately this morning.
IN HIS SPEECH LAST NIGIHT, Donald Trump didn’t hint that some type of deal is brewing — he appeared to double down — but who knows what Lutnick or other Trump aides will say this morning?
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A MORE IMPORTANT ISSUE is the ongoing carnage in Ukraine, which also is the subject of countless trial balloons and rumors. We thought the most important news in last night’s Trump speech was the hint that a Ukraine deal may be imminent.
TRUMP MAY BE SOFTENING ON A DEAL, especially as Volodymyr Zelensky expresses contrition — but not an explicit apology — for last Friday’s debacle.
WE WROTE ON MONDAY THAT A UKRAINE DEAL IS likely, possibly soon, but we don’t see a deal on other issues — the U.S, budget, massive layoffs and tariffs. That narrative will change hourly, with Lutnick probably providing more confusion.
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