US Stock Market Starts Mixed as It Awaits Auto Tariff Relief Announcement

Withdrawal of Forecasts in the Automotive and Aviation Industries Continues

Besent Mentions Basics Without Details on Auto Tariffs and Country-Specific Negotiations

Amid some major companies withdrawing their performance forecasts for this year, the US stock market started mixed on the 29th (local time) as investors awaited news of auto tariff relief.

At 10:20 AM Eastern Standard Time, the S&P 500 and Nasdaq Composite Index fell by 0.2% each. The Dow Jones Industrial Average rose by 0.1%.

The Bloomberg Dollar Index rose by 0.1%, and the 10-year Treasury yield fell by 1 basis point (1bp = 0.01%) to 4.195%. It remained almost unchanged at 20%.

Bitcoin rose by 0.3% to trade at $94,828.29, and Ether rose by 1.6% to $1,815.5. The spot gold price fell by 1% to trade at $3,309.21 per troy ounce.

General Motors and JetBlue Airways, which announced their earnings on this day, followed Tesla and American Airlines last week in withdrawing their performance forecasts for this year. United Parcel Service (UPS), considered an economic bellwether, announced that it expects to cut 20,000 jobs and close dozens of facilities this year. Amazon.com fell after the White House's decision to label the impact of tariffs on prices as a 'hostile and political act.'

Treasury Secretary Scott Besent did not specifically mention any progress on trade agreements in his morning remarks at the White House, causing the New York stock market to fall early on. Secretary Besent reiterated that the framework for negotiations with South Korea and Japan is taking shape, and that with India, it is nearing completion. However, he provided no additional information on the progress of negotiations with China, disappointing the market.

About one-third of S&P 500 listed companies will announce their earnings this week. According to FactSet, over 36% of S&P 500 companies have announced their earnings so far this season. Of these, 73% exceeded Wall Street consensus, slightly below FactSet's 5-year average of 77%.

Throughout most of last year, the US was cruising, but consumer sentiment has weakened this year. Additionally, the trade deficit in goods surged to a record high in March due to tariff-related import competition, dampening GDP growth. This suggests that the US economy took a significant hit in the first quarter.

Ian Lingen of BMO Capital Markets said, "In the short term, we are concerned that economic indicators will worsen further," and expects that investor concerns about growth will also pressure stock prices.

On this day, strategists at HSBC Holdings lowered their year-end S&P 500 target from 6,700 points to 5,600 points, citing tariff costs and weaker-than-expected US economic growth as pressures on corporate profits.

Guest Reporter Kim Jung-ah kja@hankyung.com