Editor's PiCK
Attention on Continued Stock Market Turbulence from Trump Tariffs [New York Stock Market Weekly Outlook]
Summary
- President Trump's tariff policies are expected to cause significant volatility in the New York Stock Exchange this week.
- The U.S. government's exclusion of mutual tariffs on some items such as smartphones and computers is reported to have a positive impact on investors.
- The future earnings guidance of major companies is expected to have a significant impact on the market and will be more noteworthy than the first-quarter earnings.
Significant Volatility Expected This Week Due to White House Tariff Policies
Exclusion of Smartphones and Computers from Mutual Tariffs is Positive
The New York Stock Exchange is expected to show significant volatility during the week of the 14th to the 17th (local time) due to the White House's tariff policies. U.S. President Donald Trump announced that mutual tariffs with all trading nations except China would be suspended for 90 days and that tariffs on China would not be increased further.
The news that the U.S. government has excluded some items, such as smartphones and computers, from mutual tariffs is welcome news for investors. However, the universal 10% tariff on all trading nations remains, and the trade negotiations with China have not yet begun, which is a variable.
According to Evercore ISI, China produces 80% of Apple iPads and more than half of Mac computers. At the same time, given the insufficient U.S. electronic manufacturing infrastructure, there is a growing view that Trump will find it difficult to impose tariffs on electronic products in the future.
Dan Ives, head of global technology research at Wedbush Securities, said, "This is a dream scenario for tech company investors," adding, "Excluding semiconductors and smartphones from mutual tariffs is a game-changing scenario in imposing tariffs on China."
Major companies' earnings announcements are also expected to continue this week. As the impact of Trump tariffs is expected to be fully reflected in the second-quarter earnings, the market is likely to focus more on future earnings guidance than on first-quarter earnings themselves. According to FactSet, the market currently expects corporate profits to grow by 10.7% in 2025 and 14.1% in 2026.
Major corporate earnings announcements include Goldman Sachs (14th), Citigroup, Bank of America, United Airlines (15th), Netflix, and American Express (17th). On the 18th, the U.S. financial markets will be closed in observance of 'Good Friday.'
New York = Correspondent Shin-Young Park nyusos@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.
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