'Bad is Good'... Rise Despite EU·Mexico Tariff Announcement [New York Stock Exchange Briefing]

The three major indices of the New York Stock Exchange closed higher. This is a so-called 'Bad is Good' market, where even negative news is taken as a positive as uncertainty is resolved and used as a catalyst for gains.

On the 14th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished at 44,459.65, up 88.14 points (0.20%) from the previous close. The S&P 500 index rose 8.81 points (0.14%) to 6,268.56, and the NASDAQ Composite Index advanced 54.8 points (0.27%) to close at 20,640.33.

Although U.S. President Donald Trump announced last weekend a 30% tariff on the European Union (EU) and Mexico, the stock market turned bullish on bargain buying.

Trump announced on the 12th that a 30% tariff would be imposed on the EU and Mexico starting August 1. This is separate from tariffs on specific sectors such as steel and copper.

Market participants indicated that, although Trump imposed a high tariff on the EU, there is still time until August 1, and there is a prevailing view that the actual tariff rate will be lower.

JPMorgan Chase stated in a report today, "The market seems to believe that even if Trump retracts the high tariffs before August 1, or if a short-term adjustment occurs, it will be an opportunity to buy. Now that the market will focus on earnings, we will maintain a 'tactical bullish' stance."

On the contrary, there is a sentiment that the uncertainty over country-specific tariffs has now been resolved. With the announcement of tariffs on the EU and Mexico, Trump has now unveiled almost all tariff rates for the major U.S. trading partners.

Meanwhile, with the upcoming earnings releases of companies such as JPMorgan Chase and Morgan Stanley this week, the earnings season for U.S. corporations for the second quarter begins in earnest. Investors are paying more attention to guidance for the second half of the year than the Q2 results themselves.

Among notable industries and stocks, the Philadelphia Semiconductor Index fell 0.87% due to fatigue following its recent sharp rise.

Among U.S. tech giants with a market capitalization over $1 trillion, NVIDIA, Microsoft, and Apple all declined. Apple fell 1.2%, leaving its $3 trillion market cap at risk.

U.S. artificial intelligence (AI) defense contractor Palantir jumped 4.96%, bringing its market cap to $337.5 billion.

Bitcoin surpassed $120,000 for the first time ever, fueling gains in related stocks such as Strategy, which climbed 3.78%.