Trump: "Iran attack, extremely weak response"… Indices up, international oil prices down [New York Stock Market Briefing]

Tesla rises 8%... Robo-taxi receives acclaim

Although Iran launched missiles at the US military base in Qatar, the New York stock market closed higher. This is because Iran's attack was largely anticipated in advance, and concerns of further escalation eased. International oil prices also plummeted.

On the 23rd (local time), the Dow Jones 30 Industrial Average closed at 42,581.78, up 374.96 points (0.89%) from the previous trading day. The S&P 500 index finished at 6,025.17, up 57.33 points (0.96%) from the last session, and the NASDAQ Composite ended at 19,630.98, up 183.57 points (0.94%).

Investor sentiment recovered as concerns of escalation in the Middle East and a blockade of the Strait of Hormuz eased. In the afternoon, Iran fired missiles toward a US military base in Qatar. This was in retaliation for the US military's bombing of three Iranian nuclear facilities on the 21st. However, President Donald Trump of the United States described Iran’s attack as an “extremely weak response.” He stated that there were no American casualties. President Trump said, "I want to thank Iran for ensuring there were no casualties by providing advance notice (of the attack)."

Bloomberg also reported, "Iran's attack was sufficiently signaled in advance," and added, "Tehran intended this attack as a symbolic show of force while leaving the door open to de-escalation."

With hopes for a reduction in geopolitical risk, international oil prices also plunged. On the New York Mercantile Exchange (NYMEX), the front-month West Texas Intermediate (WTI) crude futures settled at $68.51 per barrel, down $5.33 (7.2%) from the previous session. On the same day at the London ICE Futures Exchange, the front-month Brent Crude futures closed at $71.48 per barrel, a sharp drop of $5.53 (7.2%).

Expectations of a base rate cut also served as a positive factor. Michelle Bowman, Vice Chair of the Fed, said at a keynote speech at a conference hosted by the Czech National Bank in Prague, Czech Republic, "Should inflationary pressures remain contained, I would support a rate cut as early as the next (July) monetary policy meeting."

Previously, Fed Governor Christopher Waller also stated in a CNBC interview that they should begin to consider a rate cut at the July Federal Open Market Committee (FOMC) meeting. With two Fed officials signaling the possibility of a rate cut in July within a week, market expectations for an early policy easing have grown.

Looking at individual stocks, Tesla closed at $348.68, an increase of 8.23%. The surge is believed to be due to strong buying momentum following the initiation of robo-taxi test operations. Elon Musk, CEO of Tesla, announced on social media that "robo-taxis will begin service on Sunday afternoon in Austin, Texas, with a fare of $4.2 (about ₩6,000)."

Microsoft rose by 1.8% and Meta gained 2.37%. NVIDIA and Apple increased by 0.22% and 0.25%, respectively. In contrast, Amazon and Alphabet fell 0.58% and 1.03%, respectively. The stock price of Circle, a stablecoin-related company, soared 9.64%. Since its listing on the 5th, it has risen more than sevenfold.

Jin Young-gi, Hankyung.com Reporter young71@hankyung.com