US Stock Market Rebounds Sharply in a Day from Plunge... Volatility Peaks

Korea Economic Daily

Summary

The US stock market rebounded sharply from a plunge, with gold and Bitcoin recovering to all-time highs and $90,000, respectively.
As the stock prices of major companies like Tesla, Netflix, Meta, and Amazon rose, market volatility increased, and it is expected to continue in the short term.
There has been progress in the bilateral trade agreement between the US and India, which is expected to positively impact the market.

Gold Hits All-Time High, Bitcoin Recovers to $90,000

On the 22nd (local time), the US stock market rebounded sharply from the previous day's plunge. Volatility increased.

As of 10:10 AM Eastern Standard Time, the S&P 500 rose 1.7%. The Dow Jones Industrial Average also rose 1.7%, and the Nasdaq Composite Index rose 1.9%.

The 10-year US Treasury yield fell 4 basis points (1bp=0.01%) from the previous day to 4.37%.

Concerns over the erosion of the Federal Reserve's independence led to a rush to safe assets, pushing gold to trade at an all-time high of $3,500 per ounce. The yen strengthened, surpassing 140 yen per dollar.

Bitcoin also rose more than 3% in the US market, recovering to the $90,000 level for the first time since March. Ether rose 3.2% to reach $1,628.06.

Tesla, ahead of its first-quarter earnings announcement after the market closed, rose 3.8% to trade at $236. Netflix rose 4%, while Meta and Amazon rose 1% and 2%, respectively. Nvidia traded up 2% at $99.

Vincent Juvyns, chief investment strategist at ING, stated, "All you need to know is that we don't know what's going to happen next," and predicted that market volatility would increase in the short term.

Larry Tentarelli, founder of the Blue Chip Daily Trend Report, said, "Uncertainty about the tariff cycle and the economy is very high." He emphasized, "Uncertainty related to Federal Reserve Chairman Jerome Powell has added another layer, increasing overall market volatility."

Stuart Kaiser, head of equity trading strategy at Citigroup, said in an interview with Bloomberg TV, "We expect successful trade negotiations with major trade allies," which would positively impact the market.

On this day, the US announced significant progress in the bilateral trade agreement following a meeting between Vice President JD Vance and Indian Prime Minister Narendra Modi. Vice President Vance urged India to purchase more US goods, including energy and military equipment.

Guest reporter Jung-A Kim kja@hankyung.com

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