US Stock Market Opens Mixed on February Retail Sales and Manufacturing Data

Treasury Secretary Bessent's Comments Also Negatively Impact the Market

On the 17th (local time), the US stock market initially fell as February retail sales increased less than expected and manufacturing indices showed weakness, but is now attempting to reverse upward. Treasury Secretary Bessent's passive remarks about market corrections the previous day also negatively affected market sentiment.

As of 10:05 AM Eastern Time, the S&P 500 rose 0.25% and the Dow Jones Industrial Average gained 0.2%. The Nasdaq rose as much as 0.6% at the open but turned negative again around 10 AM.

Tesla, which has fallen for eight consecutive weeks until last week, is trading down 2.5% at $243 today. Nvidia, ahead of its annual software developers conference GTC, showed gains in pre-market trading but is currently trading at $121, down 0.2% as of 10 AM.

The 10-year Treasury yield fell 3 basis points (1bp=0.01%) to 4.29%. The Bloomberg Dollar Spot Index dropped 0.2%, while the Japanese yen remained almost unchanged at 148.76 yen per dollar.

Spot gold, which surpassed $3,000 per ounce for the first time last Friday before declining, is trading at $2,989.56 per ounce, up 0.2% from the previous trading session. West Texas Intermediate crude traded at $67.82 per barrel, up 1%.

The US February retail sales report released before the market open showed a 0.2%p increase, recovering from January's negative figure, providing some relief. However, it was lower than the 0.6% increase economists had forecast.

Meanwhile, the March New York State manufacturing activity index released by the New York Fed came in at -20, the lowest level since early last year. In particular, the price index paid by manufacturers reached its highest level in two years, interpreted as the beginning of tariff effects on imported goods.

The S&P 500 had fallen more than 10% from its late February peak and remained in correction territory until last Thursday, but surged 2% on Friday as investors bought into tech stocks like Nvidia and Palantir that had plummeted. The Dow recorded its biggest weekly decline since 2023. The Nasdaq Composite remains in correction territory, down 12% from its peak.

Concerns about consumer confidence are growing due to President Trump's rapidly changing tariff policies and Elon Musk's push for federal employee layoffs and cost-cutting measures.

Treasury Secretary Bessent's comments that market pain and economic pain must be endured to downsize government agencies and reestablish trade order also negatively impacted market sentiment. Secretary Bessent added, "There is no guarantee that a recession can be avoided."

Derek Harris, portfolio strategist at Bank of America Securities, pointed out, "US efficiency, deregulation, and trade 'detoxification' mean more pain for markets before GDP growth."

Kim Jung-a, Contributing Writer kja@hankyung.com