Elon Musk's 15 words that excited Wall Street more than the US-China deal

(Dan Tri) - A US-China agreement failed to move the market, but Elon Musk's 15-word apology sent Tesla shares soaring. What is really driving investor sentiment?

The billionaire's unexpected turn

A brief message sent shockwaves through the markets. Elon Musk, the billionaire known for his outspoken statements, admitted that some of his recent tweets aimed at Donald Trump had “gone too far.” The apology, though short, carried enormous weight.

For Tesla investors, this is more than just talk. It’s a conciliatory gesture, a strategic move that could help mend the relationship between the world’s richest man and the man who could become the world’s most powerful.

Fears that Tesla could be the target of retaliation from a future Trump administration have been hanging over it like a dark cloud. Musk’s apology was like a ray of sunshine that pierced that cloud.

The market reaction was immediate and unmistakable. Tesla shares jumped 2.9% ahead of the US open, following an impressive 5.7% gain the day before. Clearly, reducing political risk for a “king stock” like Tesla is more important to Wall Street than a vague geopolitical deal.

Tensions between Donald Trump and Elon Musk appear to be easing (Photo: Getty).

The indifferent handshake between two superpowers

In stark contrast to that excitement, the market took a lukewarm tone toward the “framework agreement” announced after two days of intense negotiations between the US and China in London. Details were extremely limited, with US Commerce Secretary Howard Lutnick telling the Wall Street Journal only that he was “very pleased.”

The core of the deal appears to be a trade-off: The US wants China to resume exports of rare earths and magnets—critical high-tech materials—while China asks the US to ease its embargo on semiconductor chips. If that happens, it could be seen as a strategic victory for Beijing.

“The rare earths issue has now become a real lever for Beijing,” said Christopher Wood, chief strategist at Jefferies.

This skepticism has cast a shadow over US markets, with all three major indexes down slightly before the open. Jim Reid of Deutsche Bank summed up the anxiety on Wall Street perfectly: investors are wary of a “déjà vu” scenario from 2018-2019, when seemingly good talks collapsed just as delegates returned home.

Lessons from the market

The mixed market reaction this week paints a clear picture. Asian stocks may have been cautiously optimistic, and Europe was flat, but the real story was on Wall Street.

It shows that in an era of mega-influencers and unpredictable politics, corporate-level risks are sometimes more tangible and urgent than macro geopolitical deals.

In the end, Wall Street voted. And their vote showed that in the confrontation between a 15-word apology and an international framework agreement, Elon Musk won.

Source: https://dantri.com.vn/kinh-doanh/15-tu-cua-elon-musk-khien-pho-wall-phan-khich-hon-ca-thoa-thuan-my-trung-20250614214205129.htm