Elon Musk's recent apology to Donald Trump has captured the attention of investors—and financial markets are responding more positively to this development than to the latest U.S.–China trade agreement.

On Monday, Musk expressed regret over several posts on his X (formerly Twitter) platform that had been critical of Trump, including a now-deleted comment that appeared to support calls for the former president’s impeachment. The apology reportedly came after a private call between Musk and Trump, facilitated by Trump’s inner circle—including Vice President JD Vance and advisers David Sacks and Susie Wiles.

White House press secretary Karoline Leavitt confirmed that Trump accepted Musk’s apology and considered the matter “settled.” She also emphasized that Musk and his companies—including Tesla and SpaceX—continued to have the administration’s full support.

The reaction on Wall Street was swift. Tesla shares rose by nearly 2% in early trading following the news of Musk’s reconciliation with Trump. The stock had fallen more than 14% in the weeks prior amid concerns that Musk’s political feud with Trump could threaten his access to federal contracts or regulatory favor.

Meanwhile, investor response to the recently unveiled U.S.–China trade framework was far more muted. Despite hopes for improved economic ties, analysts noted that the agreement lacked specific commitments and remains subject to approval from both countries' leadership. As a result, markets appeared to shrug off the deal, with little movement in broader indexes.

Market analysts say the contrasting responses highlight how individual relationships—particularly involving high-profile figures like Musk and Trump—can have a greater immediate impact on investor confidence than long-term international policy frameworks.

“This isn’t just about Tesla stock,” said Erica Lim, a senior markets analyst at Nexus Capital. “It’s about investors feeling reassured that political risk is being managed, especially when someone like Musk is so deeply embedded in government-linked industries.”

The incident underscores the influence of personal dynamics in U.S. politics and business, especially as the 2024 election cycle continues to shape market expectations. With Musk’s companies involved in federal initiatives ranging from electric vehicles to satellite internet and defense contracts, alignment with the White House remains crucial.

For now, the Musk–Trump truce seems to have calmed investors. But as political tensions evolve, market sentiment may continue to hinge not just on policy—but on personality.