Navigating Trade Deals: Insights on the Vietnam Agreement and Market Reactions

The Nasdaq and the S&P 500 both closed out records yet again yesterday as Trump announced a trade deal with Vietnam.

Vietnam is agreeing to pay a 20% tariff on goods sold in the US and will also pay a 40% tariff on trans shipping.

Trump says the US will be able to sell products in Vietnam without any tariff.

Meanwhile, Tesla is having a back and forth week after a plunging Tuesday as Elon Musk and Trump reignited.

Investors found comfort in the company's Q2 deliveries even though they missed estimates and revealed a 14% year over year decline.

Well, joining me ahead of the holiday weekend this morning is Gabby Veri, CEO and founder of Latino Wall Street.

Gabby, good morning.

Thank you so much for joining me.

So we got a much better than expected jobs report, but first and foremost, what are your thoughts on the Vietnam trade deal and other potential trade deals as we head into holiday weekend?

Yes, good morning, Remi.

Well, it's definitely good news that Vietnam deal, I mean, the United States is getting the better deal, right, the better part of the deal.

So you know, we need to remember the date that's July 9th, that's the deadline for to negotiate these tariffs with all these different countries.

There's Quite a few that we have left.

So what the markets want to see right now is more trade deals that benefit the United States.

All that is bullish for the markets.

We want to get as many done as possible, but we only have a couple of business days left, so I'm not quite sure how realistic it is.

And with the jobs report, yes, they were better than expected, and that can be a very good look for the administration.

However, Uh, for the Fed and for interest rate cuts, which is what they want, it's, it's not the best, right, because if things are strong, then why would we need to cut rates.

So it becomes, yes, it's good news, but is it actually what we need if our goal is to cut rates immediately.

Yeah, and that is a key part of the economy that we'll keep our eyes on.

And right now we are looking at the S&P 500 hitting yet another record high.

But zooming in, Nvidia had made a new all-time high this week while Tesla's Q2 delivery showed a 14% year over year decline.

So what key names are you focusing on as we head into the second half of this year?

Yeah, so 100%, you know, the technology sector and the artificial intelligence sector have been booming, right?

It's interesting because they they were the most affected when the year started and the market was a little bit scared about the tariffs.

But now as we see deals coming through, as we see things cooling.

Down and us making progress, then you see they are the first ones to skyrocket, right?

I don't think we should forget about commodities even though things seem really good right now in the markets it's like record highs after record highs, even though we haven't cut rates.

So it makes us think, right, how is the market going to react when we finally cut rates?

It could potentially be way higher than what it is now, that's the projection.

So, you know, we'll have to go and see, but definitely um the technology sector, AI and can't forget about commodities because if things turn around if You know, we get into more of a geopolitical issues around the world.

All those things have not been solved 100%, so they've come down and we think we're out of danger, but we have to remember we're living uncertain times with a lot of changes and volatility and and a lot of enemies, quite frankly, so I will keep an eye on gold as well.

Yeah, and Gaby, last but not least, before I let you go, you brought up uncertainty and you also brought up geopolitics and we know that that is an area that we will keep our eyes on and there's still plenty of unknowns when it comes to geopolitics.

So as we head into the Holiday and many Americans out there might be worried about rising prices or when are the prices that actually went up going to start ticking lower.

So what would you say to those people who are concerned about how their paychecks may be stretched right now?

Yeah, so that's definitely a concern because, um, you know, even though the, the inflation numbers come out a certain way or they tell us it's under control or they're improving or whatever it is, when you go to a store you can still feel.

Uh, those, you know, those prices and inflation affecting your pockets directly.

So you know we can't control what the prices are going to be.

You have to focus on what you can actually control, and that's going to be your different sources.

Income, so adding more sources of income and making sure you invest and you don't leave your money in the bank just to do nothing, right?

Making the money work for you.

At the end of the day this is always what I tell my Latino community, you know, we can't control Trump or Powell or, you know, any of these things that happen in the world.

What we can't control is what we do and as long as we focus on that.

Um, having different sources of income and making sure, you know, whatever money is left, we're investing it in a smart way and in proven assets, um, in income producing assets, then we're going to be fine.

OK, Gabby, well, we will have to leave it there, but as always, thank you so much for joining us.

It's great to talk to you.

Have a safe and happy 4th of July.

Thank you, same to you.