[New York Stock Market Briefing] S&P, '-5%' Compared to Pre-Mutual Tariff Announcement... Narrowing Decline in US Market

S&P 500 Index Weekly Rise of 5.7%

5% Decline Compared to Pre-Mutual Tariff Announcement

Apple 4%·NVIDIA 3% Rise

The New York stock market rose. Although China retaliated by raising the tariff rate on the US to 125%, the market was relieved. This is because the two countries hinted that they would not raise the tariff rates further, thus resolving at least the uncertainty of US-China tariff rates.

On the 11th (local time) on the New York Stock Exchange, the Dow Jones Industrial Average closed at 34,212.71, up 619.05 points (1.56%) from the previous session. The Standard & Poor's (S&P) 500 Index closed at 4,536.36, up 95.31 points (1.81%) from the previous session, and the tech-heavy Nasdaq Index closed at 16,724.46, up 337.14 points (2.06%) from the previous session.

Sangyoung Seo, a researcher at Mirae Asset Securities, said, "The stock market started rising despite China's additional tariff announcement and a sharp rise in bond yields. In particular, as the possibility of dialogue between the US and China was raised, Apple, which was highlighted by the expectation of tariff exemption, and NVIDIA, which was supported by China's semiconductor regulation adjustment, led the market," adding, "During the day, as the rise in bond yields narrowed, the rise expanded. Also, as the earnings season began in earnest starting with financial stocks, the market tended to focus on fundamentals and earnings issues." He added, "We should note that trading volume is gradually stabilizing, approaching the 20-day average."

The US stock market, which fell again due to China's retaliatory tariffs the previous day, ended the tough weekly trading on a strong note as optimism about tariff negotiations emerged despite China's announcement to raise the US tariff rate to 125%.

The Customs Tariff Commission of the State Council of China announced on this day a tariff adjustment notice to raise the tariff rate on US imports from the existing 84% to 125% starting on the 12th. This is in response to the US recalculating the tariff on Chinese imports to 145%.

However, China added, "The current tariff rate has already reached a level where US imports cannot be accepted in the Chinese market," and "Even if the US continues to play with numbers with tariffs, we will now ignore it." This revealed China's stance that it would not respond even if the US raises tariffs again.

Previously, US President Donald Trump also stated that even if China retaliates, he would not impose additional tariffs. At least regarding tariff rates, the nerve war between the two countries has come to an end.

The S&P 500 Index rose 5.7% on a weekly basis, recording the highest weekly increase since November 2023. Compared to the closing price on the 2nd, just before the mutual tariff announcement, the decline narrowed to 5.4%.

Apple, the top market cap, rose 4.06%, and NVIDIA, the leading AI chip stock, also closed up 2.97%. Semiconductor stocks such as Broadcom (5.59%) and AMD (5.30%) also rose by 5%.

Newmont, the world's largest gold mining company, surged 7.91%, supported by a gold price rally and an upward revision of Wall Street's investment opinion.

Minkyung Shin, Hankyung.com reporter radio@hankyung.com