New York Stock Exchange Starts Lower One Day Before Reciprocal Tariff Announcement

Safe-haven Assets Rise as Treasury Bonds and Gold Prices Hit Record Highs

Tesla Rebounds While Tech Stocks Like Nvidia Continue to Decline

On the first day of the second quarter, one day before President Trump's reciprocal tariff announcement, the New York Stock Exchange started lower.

At 10 a.m. Eastern Standard Time, the S&P 500 fell by 0.4%. The Nasdaq Composite also dropped by 0.3%. The Dow Jones Industrial Average decreased by 0.7%.

Due to anxiety over tariffs, demand for safe-haven assets like treasury bonds and gold increased, pushing gold prices to another record high. The 10-year treasury bond yield fell by 2 basis points (1bp=0.01%) to 4.18%. Spot gold surpassed $3,165 per ounce, continuing its record-breaking streak for the second consecutive day.

Nvidia traded at $108, down 0.3%. Apple and Alphabet shares also fell by more than 1% each. In contrast, Tesla, which is set to announce its first-quarter vehicle delivery figures the next day, rose by 1.6% to $263.

The Washington Post reported that the Trump administration is considering a draft to impose a tariff of about 20% on most products imported into the United States.

Due to uncertainty, the U.S. stock market is experiencing high volatility. The previous day, the S&P 500 hit its lowest point in six months before rebounding in the afternoon. In the first quarter, the S&P 500 index fell by 4.6%, and the Nasdaq Composite dropped by 10%, marking the worst quarterly performance for both benchmarks since 2022.

Anshul Gupta, Vice President at Barclays, noted, "There is room for a relief rally if the tariffs are less aggressive, but the market is likely underestimating trade risks, so the downside risk remains high."

Guest Reporter Jung-A Kim kja@hankyung.com