[New York Stock Market Briefing] Rises on Expectations of Tariff Uncertainty Resolution...Nasdaq Up 0.87%

Major indices on the New York Stock Exchange closed higher. This is due to expectations of resolving uncertainty ahead of U.S. President Donald Trump's announcement of reciprocal tariffs.

However, after the reciprocal tariff announcement, it is showing weakness in after-hours trading.

On the 2nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 235.36 points (0.56%) to 42,225.32, the Standard & Poor's (S&P) 500 index rose 37.90 points (0.67%) to 5,670.97, and the tech-heavy Nasdaq Composite Index rose 151.15 points (0.87%) to 17,601.05.

Immediately after the market closed, it seems that market participants expected uncertainty to be resolved ahead of President Trump's announcement of reciprocal tariffs at the White House Rose Garden.

President Trump announced a 10% universal tariff and reciprocal tariffs with different rates for each country. The U.S. is expected to negotiate with each country based on the announced tariff rates.

In the regular session, among the seven stocks of the large tech group 'Magnificent 7' (M7), Nvidia (0.25%), Apple (0.31%), Tesla (5.33%), and Amazon (2.00%) rose, while Microsoft (0.01%), Google's parent company Alphabet (0.02%), and Facebook's parent company Meta (0.35%) fell.

Tesla rose on the possibility that CEO Elon Musk might soon leave his role in the U.S. administration and return to the company. U.S. political media Politico reported that Musk would step down from his position as head of the Department of Government Efficiency (DOGE) within weeks and transition to an advisory role. However, the White House denied this, stating that Musk would leave public office after completing the DOGE task.

Amazon's rise is due to news of its pursuit to acquire TikTok. It has partnered with AI-based mobile technology company Applovin and is competing with software company Oracle, AI startup Perplexity, and private equity firm Blackstone to acquire TikTok.

Pro-Trump cable news channel Newsmax fell 76.83% on the day. This is due to profit-taking after surging 735% on its debut day on the New York Stock Exchange on the 31st and 179.01% on the second day.

By sector, among the 11 sectors that make up the S&P 500, 9 sectors rose: consumer discretionary (2.02%), energy (0.07%), financials (0.9%), healthcare (0.63%), industrials (0.93%), materials (0.79%), real estate (0.47%), technology (0.56%), and utilities (0.44%), while 2 sectors fell: consumer staples (0.18%) and communication services (0.14%).

The consumer discretionary sector's rise was notable again on this day.

The economic indicators announced on this day did not have a significant impact on the stock market focused on tariffs.

According to Automatic Data Processing (ADP), a U.S. employment information company, private employment in March increased by 155,000 compared to the previous month. This exceeded both market expectations and the previous month's figures.

According to the FedWatch tool of the Chicago Mercantile Exchange Group (CME Group), as of the market close on this day, the probability that the Federal Reserve (Fed) will cut the benchmark interest rate by more than 25 basis points (1bp=0.01%) in the first half of this year is 64.4%, down 11.2 percentage points from the previous day.

The possibility of more than two cuts (each 25bp) within the year is reflected at 86.8%, and the possibility of more than three cuts is 59%.

Meanwhile, the Volatility Index (VIX) compiled by the Chicago Board Options Exchange (CBOE) indicated 21.51, down 0.26 points (1.19%) from the previous session.

Han Kyung-woo, Hankyung.com Reporter case@hankyung.com