[New York Stock Market Briefing] Tariff Anxiety Revived in One Day…Nasdaq Down 4.3%

The three major indices were adjusted due to the impact of the US-China trade conflict. The effect of the mutual tariff deferral lost its strength in just one day because the total tariff rate applied by the Trump administration to China was higher than expected.

On the 10th (local time), the Dow Jones Industrial Average closed at 39,593.66, down 1,014.79 points (2.5%) from the previous session. The Standard & Poor's (S&P) 500 index fell 188.85 points (3.46%) to 5,268.05, and the Nasdaq index closed at 16,387.31, down 737.66 points (-.31%) from the previous session.

The previous day, the New York stock market closed with a historic surge as President Trump announced a 90-day deferral of individual mutual tariffs applied to countries other than China. The S&P 500 surged 9.52% in just one day, the third-highest increase in US stock market history. The Nasdaq index's rise was 12.16%, the second-largest ever.

The three major indices plummeted, giving back some of the previous day's gains. Concerns over the US-China trade conflict weighed on investor sentiment. It was revealed that the new tariff rate imposed by the US on Chinese imports after the Trump administration took office was not the previously announced 125% but a total of 145%. An additional 20 percentage points were added for synthetic drug fentanyl-related tariffs.

Although the March Consumer Price Index (CPI) growth rate was 2.4%, below expert expectations, it did not significantly impact investor sentiment. The March CPI growth rate is the lowest in over four years.

All sectors showed weakness, but the decline in technology stocks was significant. Tesla plunged 7.22%. Uncertainty increased due to the resignation of the Chief Financial Officer (CFO). Apple also fell 4.23%. Concerns that iPhone prices will rise due to tariffs remain unresolved. Amazon (-5.17%) showed weakness as the Chief Executive Officer (CEO) warned of consumer price increases due to tariffs. Additionally, Nvidia (-5.91%) and Meta (-6.74%) also declined.

On the other hand, consumer staples and defensive stocks such as Walmart (1.09%), UnitedHealth Group (2.68%), Coca-Cola (1.17%), and T-Mobile (0.48%) performed well. US Steel, an American steel company, saw its stock price drop by more than 9% after Trump expressed opposition to Nippon Steel's acquisition plan.

Reporter Jin Young-ki, Hankyung.com young71@hankyung.com