PiCK

[NYSE Market Brief] Markets Rise on Trump's Reciprocal Tariff Negotiation Signals; Bond Yields Fall

Korea Economic Daily

Summary

Wall Street indices rose as President Trump's comments suggesting possibility of reciprocal tariff negotiations helped ease market concerns.
While PPI growth exceeded market expectations, positive interpretation of detailed indicators reduced inflation concerns, leading to stable bond yields that supported market gains.
Big tech stocks showed strength, with Tesla and Robinhood rising on expectations of deregulation and surge in cryptocurrency trading volume respectively.

*SEC Chairman Gary Gensler speaks before the Opening Bell ceremony at the New York Stock Exchange (NYSE) on the 5th (local time)./New York=Kim Beom-jun*

Major indices on Wall Street closed higher after President Donald Trump indicated room for negotiation while announcing 'reciprocal tariffs' policy.

On the 13th (local time), the Dow Jones Industrial Average closed up 342.87 points (0.77%) at 44,711.43, the Standard & Poor's (S&P) 500 index rose 63.10 points (1.04%) to 6,115.07, and the tech-heavy Nasdaq gained 295.69 points (1.50%) to close at 19,945.64.

President Trump's ambiguous stance on reciprocal tariffs helped ease market concerns. Particularly, his consideration of both tariff and non-tariff barriers without specifying timing and targets led to interpretations favoring negotiation possibilities.

The January Producer Price Index (PPI) rose 0.4% month-over-month, above market expectations of 0.3%, but detailed indicators were interpreted positively, reducing inflation concerns.

Stabilizing Treasury yields supported the market rally. According to Tradeweb, the 10-year Treasury yield fell 10bp (1bp=0.01% point) to 4.53% near market close, compared to the same time previous day.

Big tech stocks showed notable strength in today's trading.

NVIDIA rose 3.16% on news that Hewlett Packard Enterprise (HPE) shipped enterprise servers featuring Blackwell processors.

Tesla gained 5.77%. Despite recent weakness, the stock rebounded on Wall Street expectations that CEO Elon Musk's expanding influence in the administration could accelerate deregulation in autonomous driving.

Stocks with strong earnings reports also saw significant gains.

Digital trading platform Robinhood surged over 13% following news of doubled revenue from cryptocurrency trading surge.

Casino operator MGM jumped more than 17% after posting better-than-expected Q4 results.

Weekly jobless claims in the US showed moderation. According to the Labor Department, seasonally adjusted initial claims for the week ending February 8 totaled 213,000, down 7,000 from the previous week's 220,000 and below market expectations of 215,000.

According to CME's FedWatch Tool, the probability of a March rate hold remained at 97.5% even after the January PPI release.

The CBOE Volatility Index (VIX) fell 0.81 points (5.10%) to 15.08.

Case Han, Hankyung.com Reporter case@hankyung.com