New York Stock Market Mixed Amid CPI Concerns and NVIDIA Expectations… U.S.-Indonesia Trade Agreement Reached [Morning Briefing]

◆ New York Stock Market Mixed Amid CPI Concerns and NVIDIA Expectations

The three major indices on the New York stock market showed a mixed trend on the 15th local time. As concerns heightened over the June U.S. Consumer Price Index (CPI) posting a larger increase than the previous month, blue-chip stocks saw selling pressure. However, tech stocks strengthened as the U.S. government approved NVIDIA's export of the H20 entry-level AI accelerator (a semiconductor package specialized for AI training and inference) to China. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (DJIA) closed at 44,023.29, down 436.36 points (0.98%) from the previous session. The S&P 500 index fell 24.80 points (0.40%) to 6,243.76, while the tech-heavy NASDAQ Composite Index rose 37.47 points (0.18%) to close at 20,677.80.

◆ International Oil Prices Slump for Second Day on Middle East Ceasefire

International oil prices fell as concerns over tight supply eased. President Donald Trump of the United States granted Russia a 50-day sanction waiver, alleviating concerns that exports of Russian crude oil would face immediate disruptions. On the New York Mercantile Exchange, August delivery West Texas Intermediate (WTI) crude closed at $66.52 a barrel, down $0.46 (0.69%) from the previous session. Brent crude futures for September settlement on the London ICE Futures Exchange fell $0.50 (0.72%) to $68.71 a barrel. President Trump announced the previous day that, if no ceasefire agreement is reached between Russia and Ukraine within the next 50 days, a 100% secondary tariff would be imposed on Russia.

◆ U.S. and Indonesia Reach Trade Deal: Tariffs on Indonesian Goods Lowered to 19%, Tariffs on U.S. Goods Set to ‘0’

President Trump announced the conclusion of a trade agreement between the United States and Indonesia. On the 15th, through two posts on his self-launched social network service (SNS) ‘Truth Social’ and remarks made to reporters before departing to Pittsburgh, Pennsylvania, from the White House, Trump said, “After speaking with President Prabowo Subianto of Indonesia today, we finalized an important (trade) agreement with Indonesia.” He explained, “Indonesia will pay a 19% tariff on all goods exported to the U.S., while goods exported from the U.S. to Indonesia will be exempt from tariff and non-tariff barriers.” This tariff rate is significantly lower than the 32% figure specified in Trump’s reciprocal tariff announcement in April and a tariff letter released on the 7th. As a result, since Trump’s reciprocal tariff announcement in April, the number of countries entering new agreements with the United States has increased to three: the United Kingdom, Vietnam, and now Indonesia.

◆ KCTU General Strike Today…“Government Must Scrap Anti-Labor Policies”

The Korean Confederation of Trade Unions (KCTU) will stage a two-day general strike on the 16th and 19th, demanding the immediate withdrawal of ‘anti-labor policies’ by the Yoon Suk-yeol government. KCTU announced it would hold the 7.16 KCTU General Strike Rally at 3 p.m. today in front of the National Assembly Building in Yeouido, Seoul. Industry-sector unions affiliated with KCTU, such as the Metal Workers' Union, the Korean Federation of Public Services and Transportation Workers' Unions, and the Korean Federation of Service Workers' Unions, will hold pre-rallies before joining the main event. KCTU estimates that 10,000 people from the Seoul metropolitan area and 30,000 nationwide will participate in the strike rally.

◆ Third Day of Confirmation Hearings…Clashes Expected Over Education Minister Candidate Lee Jin-sook

Parties continue candidate vetting for the third day at National Assembly confirmation hearings for the first cabinet members of the Lee Jae-myung administration. Today, the National Assembly will hold hearings within relevant standing committees for three candidates: Lee Jin-sook, Deputy Prime Minister for Social Affairs and Education Minister; Jung Sung-ho, Justice Minister; and Kim Young-hoon, Employment and Labor Minister. A fierce confrontation is expected at the hearing for nominee Lee. The main opposition People Power Party is expected to focus strong attacks on Lee, raising allegations of thesis misappropriation and plagiarism by the nominee.

◆ UNESCO World Heritage Meeting to Be Held in Busan Next July—First in South Korea

The UNESCO World Heritage Committee, responsible for protecting and preserving ‘mankind’s treasures’, will meet in Busan next summer. At a meeting held at UNESCO headquarters in Paris, France, on the 15th, the committee selected South Korea as the host for the 48th World Heritage Committee in 2026. The next session is scheduled for July next year in Busan. This will mark the first time South Korea hosts the UNESCO World Heritage Committee.

◆ Nationwide Overcast and Rain…Watch Out for Gusts, Thunder, and Lightning

On Wednesday the 16th, it is forecast to be mostly cloudy and rainy across the country. Through the 17th, heavy localized rain is expected in central regions and the Jeolla area. Gusts, thunder, and lightning are also anticipated. Temperatures will be similar to the seasonal average (low: 20–23°C, high: 26–30°C). The day’s high is expected to range from 25 to 30°C.

Oh Jung-min, Hankyung.com Reporter, blooming@hankyung.com