New York Stock Exchange Rises on Strong Bank Earnings

Korea Economic Daily

Summary

It was stated that the New York Stock Exchange rose due to the strong earnings reports from major banks.
The day's stock movements of Boeing and Netflix, as well as the fluctuations in the U.S. bond market, were noted.
It was reported that uncertainty about companies is expected to increase due to the impact of President Trump's tariff policy.

Boeing Falls Due to China's Order to Halt Aircraft Deliveries

Netflix Surges, Tesla and Nvidia Also Rise

On the 15th (local time), as major banks reported solid earnings, the U.S. stock market fluctuated between gains and slight losses.

Despite President Trump's announcement the previous day that he is considering revising the 25% tariff on auto parts, the U.S.-China trade conflict was highlighted again as China ordered its airlines to halt deliveries of Boeing aircraft.

At 10:30 AM Eastern Standard Time, the S&P 500 rose by 0.3%. The Dow Jones Industrial Average increased by 0.2%, and the Nasdaq Composite Index rose by 0.3%.

Treasury Secretary Scott Besant dismissed speculation about China's selling of U.S. Treasuries amid recent bond sell-offs, stabilizing the bond market. The 10-year U.S. Treasury note rose by 1 basis point (1bp=0.01%) to 4.374%, calming the sharp decline.

Bank of America announced record-breaking first-quarter earnings that exceeded analysts' expectations, causing its stock to surge by 4%. Johnson & Johnson saw a slight decline despite exceeding first-quarter expectations. Boeing plummeted on reports that the Chinese government ordered its airlines to halt deliveries of U.S.-made aircraft.

Netflix, set to announce earnings this week, rose by 6.4% on the day. The rise was influenced by a Wall Street Journal report that Netflix aims to achieve a market capitalization of $1 trillion and double its current revenue to $39 billion by 2030.

Tesla, which had formed a death cross, rose by 1.6% to $256. Nvidia, which announced a $500 billion investment in the U.S. to produce AI chips, only rose by 0.3%.

Tuesday's market movement showed a state of stabilized volatility. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell below 30 after hitting a high of 60 points last week.

This week, earnings from Netflix and United Airlines will be announced. However, this earnings season comes before the impact of Trump's tariff policy on companies is clearly seen. As a result, Brenda Vingiello, Chief Investment Officer at Sand Hill Global Advisors, stated, "Uncertainty about companies is expected to increase during the earnings announcement season."

Guest Reporter Jung-A Kim kja@hankyung.com