US Stock Market’s S&P & Nasdaq Hit All-Time Highs... Device Distribution Act Repealed Today [Morning Briefing]

◆ Record Highs Fueled by Optimism for Big Tech Earnings

Ahead of the second-quarter earnings announcements for major U.S. big tech companies, optimism has spread, resulting in the S&P 500 and Nasdaq indices on the New York Stock Exchange hitting their highest levels ever on the 21st local time. The S&P 500 index closed at 6,305.60, up 0.14% from the previous session, while the Nasdaq index rose 0.38% to 20,974.17. This marks the first time the S&P 500 has closed above 6,300, and the Nasdaq has achieved a record high for six consecutive trading days. This is attributed to the positive impact of strong results from major U.S. banks surpassing expectations and anticipation of strong second-quarter earnings from the big techs. The “Magnificent 7,” referring to the largest tech companies, are projected to see a 14% growth in second-quarter earnings.

◆ Gains Capped by Concern Over Highs... Dow Jones Falls

However, the Dow Jones, another key index on the New York Stock Exchange, showed a mild decline, closing at 44,323.07, down 0.04% from the previous session. U.S. companies are posting strong results despite “tariff uncertainty,” but mounting concerns about market highs have surfaced, as the stock market has been on the rise since April, when President Donald Trump's tariff policy began to take effect. The U.S. Leading Economic Index for June stood at 98.8, down from the previous month. The Trump Administration stated that instead of rushing to reach an agreement in tariff negotiations, their focus would be on securing “satisfactory conditions.”

◆ US Treasury Secretary: 'High-Quality Trade Agreements Are Important'

Scott Besant, the US Secretary of the Treasury, emphasized during a CNBC interview on the 21st local time that reaching “high-quality agreements” is more important than swiftly concluding trade deals before the mutual tariff imposition date of the 1st of next month. “Quality over timing,” he noted. He added, “We will not rush into an agreement.” This leaves room for additional negotiations after the deadline passes; Howard Lutnick, the US Secretary of Commerce, similarly stated in a CBS interview the previous day that “new tariff rates will apply from August 1, but countries will still be able to negotiate with us afterward.”

◆ Device Distribution Act Scrapped—Will Phones Get Cheaper?

The “Act on the Improvement of Distribution Structure of Mobile Communication Devices”—criticized for raising consumer burdens by capping carrier subsidies for phone purchases—was repealed today (22nd). As a result, carriers are no longer obligated to officially announce subsidies, and the cap on extra subsidies, previously limited to 15% of disclosed subsidies, has been lifted. Retailers can now freely decide on additional subsidies, which had previously been considered illegal. Samsung Electronics’ new foldable phones, Galaxy Z Flip 7 and Fold 7, set for official release on the 25th, are expected to serve as a litmus test for the market in the wake of the act’s repeal.

◆ 'Daeseo (大暑)'—Scorching Heat Nationwide, Tropical Nights—Showers in Interior Regions

Today, on “Daeseo (大暑),” recognized as the hottest period of the year, and a Tuesday, sweltering heat and tropical nights are expected nationwide. Daytime highs are forecasted to reach between 29 and 34 degrees. As heat advisories have been issued for most areas, the maximum perceived temperature could rise to around 33 degrees, with tropical nights (where overnight lows don’t fall below 25 degrees) occurring in several regions. Skies will be partly cloudy nationwide, with occasional showers, gusts, thunder, and lightning mainly in inland areas, while fine dust levels are expected to remain “good” everywhere.

Kim Bong-gu, Hankyung.com Reporter kbk9@hankyung.com