New York Stock Market Rises Amidst US-China Trade Negotiation Observations

NVIDIA, Tesla, and TSMC Climb

"Any News from the US-China Deal Will Significantly Impact the Market"

On the second day of the US-China trade talks, June 10 (local time), the US stock market started mixed as it awaited the results, before turning higher. At 10:20 a.m. Eastern Standard Time, the S&P 500 index was up 0.2% from the previous day, and the Nasdaq gained 0.3%. The Dow Jones Industrial Average, which had opened lower, also reversed into positive territory.

The yield on the 10-year US Treasury note was down 3 basis points (1bp=0.01%), recording 4.44%. The Bloomberg Dollar Index rose slightly early in the morning, but traded at a level similar to the previous day.

Tesla, which had surged sharply the previous day, continued its rally for a second day, rising another 1.9% today. Tesla is gearing up for its RoboTaxi announcement on the 12th.

TSMC, a key supplier for NVIDIA and Apple, reported its May sales increased by 40% year-on-year, as companies stockpiled chips amid tariff uncertainties. Following the news, TSMC's American Depositary Receipts rose 2.6%.

AI chip manufacturers like NVIDIA and AMD, which had risen the previous day on expectations that US export restrictions on AI chips to China might be eased in exchange for rare earths from China, opened slightly lower today but also rebounded. White House economic advisor Kevin Hassett stated, "Even if US export controls are relaxed, NVIDIA's high-end products will not be included," though it was unclear if this referred to the H20 chip made specifically for the Chinese market.

As US-China trade talks are taking place in London, US Secretary of Commerce Howard Lutnick said, "The discussions are proceeding smoothly."

The market is watching closely to see if there are signs that both countries might reach an agreement not to impose high tariffs on each other. Tom Essaye of Sevens Report said, "Today the market may be quiet, but if there is any significant progress—positive or negative—from the US-China negotiations, it will have a meaningful impact on the markets."

Meanwhile, the US Consumer Price Index report for May, to be released on the 11th, is expected to show a slight increase in goods prices as companies gradually pass on higher tariff costs. In particular, economists predict the core CPI will rise by 0.3%, marking the largest monthly increase in four months.

Contributing Reporter Jung-ah Kim kja@hankyung.com