[New York Stock Market Briefing] US Stocks Recover Losses from 'Tariff Bomb'... Tesla Rises Over 5%

The New York stock market rose as US President Donald Trump took a conciliatory approach to tariff policies and demands for interest rate cuts from the central bank. Now, the three major indices have only 5-6% of the losses left compared to the closing price on the 2nd, just before the 'tariff bomb' plunge.

On the 23rd (local time) on the New York Stock Exchange, the Dow Jones Industrial Average closed at 39,606.57, up 419.59 points (1.07%) from the previous day. The Standard & Poor's (S&P) 500 index closed at 5,375.86, up 88.10 points (1.67%) from the previous session, and the tech-heavy Nasdaq Composite Index closed at 16,708.05, up 407.63 points (2.5%) from the previous session.

As a result, the Dow Jones reduced its losses to the 6% range, and the S&P 500 and Nasdaq indices to the 5% range compared to the closing price on the 2nd, just before the tariff-induced volatile market began.

Sangyoung Seo, a researcher at Mirae Asset Securities, said, "The US stock market started rising due to Trump's remarks raising expectations for trade negotiations with China and media reports that tariff reductions are being pursued," adding, "In particular, semiconductors and large tech stocks led this. However, when Treasury Secretary Besent corrected media reports by saying that Trump never suggested a unilateral tariff reduction, bond yields turned upward and the stock market gave up some gains."

As President Trump lowered the intensity of his pressure campaign for interest rate cuts by saying he is not considering dismissing Jerome Powell, the chairman of the US central bank (Fed), market concerns about maintaining the independence of the US central bank eased. After the New York stock market closed the previous day, Trump said of Chairman Powell, "I have no intention of dismissing him," adding, "I hope he is more proactive about the idea of cutting interest rates."

Trump also suggested that the 145% tariff rate imposed on China is "very high" and indicated that tariffs on China could be significantly reduced depending on the progress of negotiations, which reassured the market. Trump later stated, "I will decide on China tariffs within 2-3 weeks," adding, "We are negotiating tariffs with China every day."

The stock price rise was concentrated on large tech stocks, which had previously seen significant adjustments.

Tesla's stock rose 5.4% as CEO Elon Musk announced that he would reduce government work and focus on managing Tesla starting next month, despite the company's earnings falling short of market expectations the previous day.

Apple and Facebook's parent company Meta Platforms rose 2.4% and 4%, respectively, despite being fined billions of won for violating the Digital Markets Act in the European Union (EU).

Nvidia rose 3.9% despite restrictions on exporting its AI chip H20 to China.

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