Wall Street Watches How Trump Will React to China's Retaliation [New York Stock Market Weekly Outlook]

The New York stock market is expected to be volatile this week (7th-11th) due to U.S. President Donald Trump's tariff policy.

On the 2nd, President Trump announced a 10% basic tariff on all imports and reciprocal tariffs on major trading partners. As a result, the market capitalization of $6.6 trillion disappeared from the New York Stock Exchange over two days on the 3rd and 4th.

On the 4th, the Customs Tariff Commission of the State Council of China announced that it would impose an additional 34% tariff on U.S. imports starting at 12:01 PM on April 10th, showing that the trade war initiated by Trump is expanding globally.

This week, the focus is on what measures the U.S. government will take in response to China's retaliation. President Trump has stated that he will respond more strongly if U.S. tariffs are countered with retaliatory tariffs. He responded, "China made a wrong decision," and "It's something they can't handle."

The Consumer Price Index (CPI) for March, scheduled to be announced on the 10th, is also noteworthy. On the same day, the weekly initial jobless claims will be released. The next day, on the 11th, the March Producer Price Index (PPI) will be encountered.

Experts predict that the March PPI will have risen by 0.2% compared to the previous month.

On the 9th, the minutes of the March Federal Open Market Committee (FOMC) will be released. It will provide a glimpse into the internal atmosphere of the U.S. Federal Reserve (Fed) regarding the impact of President Trump's tariff policy.

Major corporate earnings announcements are scheduled for Delta Air Lines (9th), Bank of New York Mellon, BlackRock, JPMorgan Chase, Morgan Stanley, and Wells Fargo (11th).

New York = Correspondent Park Shin-young nyusos@hankyung.com