Trump's "EU 50% Tariff Postponement" Leads to Rise in New York Stock Market

Nvidia, Tesla, and Apple Stocks Rise Ahead of Earnings Announcements

Dollar Rises Amid Bond Stability

On the 27th (local time), the first trading day after U.S. President Trump announced an agreement to postpone the 50% tariff threat on the European Union (EU) over the weekend, the U.S. stock market started with gains.

As of 10 a.m. Eastern Standard Time, the S&P 500 rose by 1.4%, the tech-heavy Nasdaq Composite Index increased by 1.8%, and the Dow Jones Industrial Average went up by 0.9%.

Optimism over trade negotiations between the U.S. and the European Union (EU) and Japan's indication to stabilize the volatile bond market by reducing the issuance of ultra-long-term bonds boosted investor sentiment.

The 10-year U.S. Treasury yield fell by 4 basis points (1bp=0.01%) to 4.47%, and major country bonds like those of Japan, Germany, and the UK also showed stability with declining yields. Bond prices and yields move inversely. The Bloomberg Dollar Spot Index rose by 0.2%, gaining against all major currencies.

Tech stocks showed an upward trend. Nvidia, which is set to announce earnings after the market closes on the 28th, rose by 1.9%, leading to a general rise in semiconductor stocks, with the iShares Semiconductor ETF (SOXX) climbing about 2%.

Apple's stock, which had seen its longest decline in three years after Trump mentioned imposing a 25% tariff on Apple iPhones and Samsung smartphones manufactured abroad, rebounded by 1.3% on this day.

Tesla's stock is trading at $352, up 3.9%, after CEO Elon Musk stated over the weekend on X that he would focus more on xAI, Tesla, and the Starship launch next week. According to the latest data from the European Automobile Manufacturers Association, Tesla's April sales in Europe fell by 49% year-on-year.

Amid escalating U.S.-China trade tensions, the U.S.-listed stock of PDD, the parent company of Chinese online retailer Temu, plummeted by over 20% after announcing that its first-quarter revenue fell short of analysts' expectations.

In an interview with CNBC, Adam Crisafulli of Vital Knowledge said, "We should be cautious about chasing the S&P 500 index at current levels." He emphasized that the market remains complacent about the two major macroeconomic risk factors of tariffs and fiscal policy, and bond yields. He also noted that high stock valuations should be considered. He mentioned that even if Trump's exaggerated tariff threats do not materialize, the offensive is not over yet.

This week, earnings announcements from Nvidia, Costco, and Macy's are scheduled for the 28th. According to FactSet, over 95% of S&P 500 companies have reported earnings this season, with 78% exceeding analysts' consensus.

Guest Reporter Kim Jung-ah kja@hankyung.com