PiCK
US Stock Market Starts with Biggest Rise in Two Years on Tariff Negotiation News
Summary
- Nvidia and Tesla surged 7.8% and 6% respectively, leading the rise in tech stocks.
- President Trump's positive remarks on tariff negotiations led to a rise in the stock market.
- Wall Street experts noted the possibility of a tactical rebound in the stock market after recent adjustments, with tariff-related news potentially pausing the sell-off.
Nvidia and Tesla Surge 6% and 7% Respectively
Trump Mentions "Positive" Tariff Negotiations with Korea Following Japan
On the 8th (local time), news that the Trump administration is conducting tariff negotiations by country led the US stock market to start with the largest rise since November 2022.
At 10:30 AM Eastern Standard Time, the S&P 500 surged 3.7%. The tech-heavy Nasdaq Composite Index rose more than 4.1%. The Dow Jones Industrial Average also rose 3.6%.
Nvidia surged 7.8% to reach $105. Tesla rose 6% to trade at $248. Major tech stocks like Meta Platforms also rose significantly, leading the rebound. Amazon and Netflix each rose more than 5%.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street's fear gauge, fell back below 40 on this day. It had soared to 60 the previous day.
The 10-year Treasury yield rose 5 basis points (1bp=0.01%) to 4.24%.
Bitcoin rose 1.2% to $79,892.59, nearing $80,000. Ether fell 0.2% to trade at $1,567.33.
President Trump said just before the market opened, "The outlook for the trade agreement with Korea looks good." The previous day, Trump threatened to impose an additional 50% tariff if China did not withdraw retaliatory tariffs, and China issued a statement saying it would respond, but Trump said, "China also wants a deal very much."
The previous day, the US stock market started with a sharp decline, then surged on fake news that the Trump administration was considering a 90-day delay in tariffs, with about 29 billion shares traded, marking the largest volume in 18 years.
Wall Street insiders said the stock market is likely to see a tactical rebound after the recent sell-off.
Strategists at Bespoke Investment Group said the tariff-related news could buy some time for the selling to pause.
Samir Samana of Wells Fargo Investment Institute said, "There was excessive selling, and there is hope that the situation will ease from now on," but cautioned that one should be careful in the short term.
Guest reporter Kim Jung-ah kja@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
