'Tariff War' Intensifies, Major Indices Fall for Second Day...Financial Stocks↓ [New York Stock Market Briefing]

The New York stock market closed lower across the board on June 4 (local time), the first day that President Donald Trump's new tariffs on imports from Mexico, Canada, and China took effect.

On the New York Stock Exchange, the Dow Jones Industrial Average closed at 42,520.99, down 670.25 points (1.55%) from the previous trading day.

The Standard & Poor's (S&P) 500 index finished at 5,778.15, down 71.57 points (1.22%), while the Nasdaq Composite closed at 18,285.16, down 65.03 points (0.35%).

Concerns that the tariff war would worsen as the targeted countries (Canada, Mexico, China) retaliated after high-rate tariffs took effect from midnight local time weighed on the market.

A key official from the Federal Reserve (Fed) also expressed concerns about the enforcement of tariffs and economic growth rates.

John Williams, President of the Federal Reserve Bank of New York, said in public remarks, "I am clearly considering the impact of some tariffs on inflation and prices," adding, "I think some of the effects will appear later this year."

By sector, most industries except technology stocks were weak. Financial stocks performed the worst with a 3.54% drop, while utilities, real estate, materials, industrials, consumer discretionary, and consumer staples also recorded declines in the 1% range.

In the financial sector, JPMorgan Chase fell 4%, Bank of America dropped 5.19%, and Wells Fargo declined 4.84%. The day's stock price drop in the financial sector was recorded as the largest single-day loss since the regional banking crisis of 2023.

U.S. automakers expected to be hurt by Trump's tariff policies also fell. GM and Ford each dropped around 3%.

Giant tech companies showed mixed results. Apple, Microsoft, and Amazon remained relatively flat. Tesla fell more than 4%, and Meta Platforms also declined by 2.30%.

Tesla's stock faced downward pressure following news that sales of vehicles made in China had plunged 50% compared to the same period last year. In contrast, Nvidia and Alphabet showed gains of around 2%.

Shares of U.S. electronics retailer Best Buy plummeted 13% after CEO Cory Barry said that tariff policies would increase price burdens on consumers.

Jeong-dong Noh, Hankyung.com reporter dong2@hankyung.com