Major Indices Rebound Over 2%... Easing US-China Trade Tensions [New York Stock Market Briefing]

The New York stock market broke its downward trend and rebounded collectively. This is attributed to the optimism that the trade negotiations between the US and China will make progress.

On the 22nd (local time), the Dow Jones Industrial Average closed at 31,986.98, up 1,016.57 points (2.66%) from the previous day on the New York Stock Exchange. The Standard & Poor's (S&P) 500 index closed at 5,287.76, up 129.56 points (2.51%) from the previous day, and the tech-heavy Nasdaq Composite closed at 16,300.42, up 429.52 points (2.71%) from the previous day.

The uncertainty triggered by the tariff policy of the Donald Trump administration and concerns over the infringement of the independence of the US Federal Reserve had heightened investor anxiety, but optimism that US-China negotiations could make progress has emerged.

US Treasury Secretary Scott Besant said at an investor event that the stalemate with China due to tariffs is not sustainable and that the situation is expected to 'de-escalate'.

White House spokesperson Caroline Levitt also mentioned in a briefing that the search for a new trade agreement between the US and China is "going very well," raising expectations for easing US-China trade tensions.

The International Monetary Fund (IMF) presented this year's global economic growth rate at 2.8%, down 0.5 percentage points from the previous estimate, considering global tariff conflicts, but the impact on the market was limited.

Also, after the market closed that day, President Trump, in a meeting with reporters following the inauguration of the new US Securities and Exchange Commission (SEC) Chairman Paul Atkins, mentioned that "we are getting along well with almost every country, including China" regarding trade disputes. He also claimed that "it is a transition period, and transitions take time," and that "other countries, including China, should also reach an agreement on trade negotiations." He added that "there is a strong support plan for China, and China will be pleased."

Sangyoung Seo, an executive director at Mirae Asset Securities, analyzed that "after Trump's remarks, US stocks outside of regular trading hours are rising, with major tech stocks on the rise," and "most stocks, including semiconductor stocks, Tesla, and Nike, are on the rise."

Meanwhile, 3M surged 8.1% on the day as it reported better-than-expected earnings, while defense contractor RTX plunged 9.8% as it mentioned in its earnings announcement that its profits are expected to be hit by tariff shocks.

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