Sideways Trading Ahead of US-China London Negotiation Results… Investors in 'Wait-and-See Mode' [New York Stock Market Briefing]
Summary
- The three major indices on the New York Stock Exchange ended flat, awaiting the outcome of the US-China London negotiations.
- The trade negotiations between the US and China resumed with a focus on the rare earth supply issue, leading to a 1.96% surge in the Philadelphia Semiconductor Index on rising expectations.
- President Trump expressed caution regarding the negotiations, resulting in continued investor wait-and-see sentiment.
The three major indices of the New York Stock Exchange moved sideways. As investors awaited the results of the US-China trade negotiations taking place in London, the market stayed in a narrow range.
US President Donald Trump said he was "receiving good reports" from the US negotiating team, but also emphasized that "China is not easy," increasing market caution.
On the 9th (local time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (DJIA) ended at 42,761.76, down 1.11 points (0%) from the previous day. The Standard & Poor's (S&P) 500 index closed at 6,005.88, up 5.52 points (0.09%), while the NASDAQ Composite Index finished at 19,591.24, a rise of 61.28 points (0.31%).
US and Chinese trade negotiators resumed talks in London that day. About a month after their early last month meeting in Geneva, Switzerland, where they agreed to withdraw most mutual tariffs, the two parties sat down at the negotiation table again.
The agenda for the day was China's supply of rare earth elements. Kevin Hassett, Chairman of the US National Economic Council (NEC), said in a media interview that the purpose of the talks was for China to supply rare earths smoothly as agreed, describing it as "a short meeting with a big, strong handshake (signifying a deal)."
With President Trump and President Xi Jinping of China having previously expressed mutual understanding by phone on the rare earth supply issue, there was considerable optimism that the talks would proceed smoothly. However, Trump's comment that the talks would not be easy added to market caution about this optimism.
The two countries will continue negotiations in London from tomorrow morning.
Meanwhile, among individual stocks, Apple held its annual Worldwide Developers Conference (WWDC) that day, but its share price fell 1.2%. Apple announced that it is redesigning the iPhone operating system for the first time since 2013, but investors expressed disappointment as there were no notable achievements in the Artificial Intelligence (AI) field.
The technology stock with the most noticeable movement was Tesla, whose share price jumped 4.55%.
On hopes for the US-China negotiations, the Philadelphia Semiconductor Index (SOX) soared 1.96%. Apart from Broadcom (-1.07%), all of the remaining 29 constituent stocks of the index rose. There was growing anticipation that if China normalizes rare earth exports, the US will ease export sanctions against China.
AppLovin fell by more than 8% after failing to be included in the index, disappointing investors.
Min-Kyung Shin, Hankyung.com reporter radio@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
