S&P 500 Plunges 10% from Peak at One Point... Technical Correction Phase Imminent [New York Stock Market Briefing]

Despite confusion over President Donald Trump's tariff policies, the New York stock market reduced its losses on the 11th (local time) due to hopes for a ceasefire in Ukraine and expectations of easing trade tensions.

On this day, the Dow Jones 30 Industrial Average closed at 41,433.48, down 478.23 points (-1.14%) from the previous session.

The Standard & Poor's (S&P) 500 index finished at 5,572.07, down 42.49 points (-0.76%) from the previous session, while the tech-heavy Nasdaq index closed at 17,436.10, down 32.22 points (-0.18%).

Seo Sang-young, a researcher at Mirae Asset Securities, said, "The U.S. stock market, which started flat, turned downward after Trump announced additional tariffs on Canada. However, toward the end of the session, the index reduced its losses and the Nasdaq turned positive following news of Ukraine's 30-day ceasefire announcement." He added, "The Ontario governor's announcement to temporarily suspend the 25% power surcharge before the market close was also favorable." However, he noted that "selling pressure reemerged just before the market close, ultimately resulting in a downward finish."

Based on today's closing price, the S&P 500 index has fallen 9.3% from its peak on the 19th of last month (6,144.15), putting it on the verge of entering a technical correction phase (a decline of 10% or more from the previous peak), following the Nasdaq index which entered a correction phase last week.

During the session, the S&P 500 index at one point expanded its loss to 1.5% (5,528.41), plunging more than 10% from its peak.

The New York stock market closed with reduced losses after Ontario announced the suspension of electricity surcharges during the session, and President Trump responded that he respected this decision. Additionally, after the New York stock market closed, the White House announced it would withdraw its plan for additional tariffs on Canadian steel and aluminum.

Investor sentiment was also boosted by growing hopes for a ceasefire as the Ukrainian delegation agreed to the U.S. proposal to halt the Russia-Ukraine war for 30 days.

Large tech stocks that had suffered significant losses the previous day, including Tesla (3.79%), Nvidia (1.66%), and Meta (1.29%), rebounded today thanks to bargain hunting. In particular, Tesla's stock price was influenced by President Trump's statement that he would "buy a car," which was seen as boosting the morale of Tesla CEO Elon Musk.

Delta Air Lines plunged 7.25% today after lowering its domestic flight performance forecast, while low-cost carrier Southwest Airlines jumped 8.34% after abandoning its free baggage policy.

Department store chain Kohl's plummeted 24.06% today after lowering its future performance outlook to reflect weakening consumer spending.

Meanwhile, European markets also fell for the fourth consecutive trading day as uncertainty surrounding U.S. tariff policies continued. The pan-European STOXX 600 index closed at 536.90 points, down 1.70% from the previous session, while Germany's DAX 40 index finished trading at 22,316.86 points, down 1.34%.

Most major national stock indices, including France's CAC40 (-1.31%), the UK's FTSE100 (-1.21%), and Spain's IBEX35 (-1.57%), fell by around 1%.

Shin Min-kyung, Hankyung.com reporter radio@hankyung.com