[New York Stock Market Briefing] "At least 15% to the EU"... Mixed Closing Amid Rising Tariff Concerns

The major indices on the New York Stock Exchange closed mixed. This came after news that former U.S. President Donald Trump was demanding at least a 15% tariff on the European Union (EU).

On the 18th (U.S. Eastern Time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (DJIA) fell 142.30 points (0.32%) to 44,342.19, the S&P 500 index slipped 0.57 points (0.01%) to 6,296.79, and the NASDAQ Composite Index rose 10.01 points (0.05%) to close at 20,895.66.

Major foreign media reported that Trump is demanding at least a 15~20% tariff on all EU items. Maroš Šefčovič, the EU Commissioner for Trade, told the EU ambassador that negotiations would be difficult, and a U.S. government official also told the media that Trump is considering a reciprocal tariff of over 10%.

Previously, Trump announced that starting August 1, a 30% tariff would be imposed on all goods imported from the EU. Although a minimum tariff of 15% is lower than this, the market initially considered the 30% tariff a negotiation tactic, so even 15% is still seen as a burden.

By sector, utilities jumped more than 1%. Consumer discretionary stocks also rose nearly 1%, while energy declined almost 1%.

Netflix, the world’s largest online streaming service, posted better-than-expected second-quarter results, but its stock dropped more than 5%. This was attributed to concerns that increased costs such as content amortization could lower its operating margin in the second half of the year.

U.S. credit card company American Express also posted strong second-quarter results, but its stock fell more than 2%. This was explained as a result of boosting its credit loss provisions to $1.4 billion, up from $1.3 billion a year earlier.

U.S. brokerage firm Charles Schwab rallied 2.9%, buoyed by a sharp increase in trading revenue in the second quarter. Major U.S. asset management firm Invesco surged 15% following news that it plans to convert its popular exchange traded fund (ETF) product QQQ into an open-end fund.

So far, 12% of companies in the S&P 500 have announced second-quarter results, with 83% beating expectations.

Sesung Oh, Hankyung.com Reporter sesung@hankyung.com