[New York Stock Exchange Briefing] Uptrend Closes on Hopes of a Trade Deal With the EU Following Japan

On the New York Stock Exchange, the major indices all rose as hopes mounted for a US-EU trade agreement following the conclusion of the US-Japan trade deal.

On the 23rd (local time) at the New York Stock Exchange (NYSE), near market close, the Dow Jones Industrial Average closed at 45,010.29, up 507.85 points (1.14%) from the previous day; the S&P500 rose 49.29 points (0.78%) to 6,358.91; and the NASDAQ Composite Index climbed 127.33 points (0.61%) to 21,020.02. Each finished higher.

This is the first time the NASDAQ has closed above the 21,000 mark.

News that the US is rapidly finalizing trade agreements with key trading partners spurred a risk-on sentiment in the markets.

First, the US-Japan trade negotiations have concluded. US President Donald Trump shared this update on his social media account the previous day. The US will lower reciprocal tariffs on Japan from 25% to 15%, and Japan will invest about $550 billion into the US. Notably, tariffs on Japanese automobiles were set at a total of 15%.

Additionally, there are reports that the US is getting closer to a basic trade agreement with the EU. According to these reports, the US is negotiating to impose a 15% reciprocal tariff on the EU. There was also talk that both sides may agree to exempt certain products, such as aircraft, liquor, and medical devices, from tariffs.

Alphabet and Tesla’s earnings, which drew significant attention from the market, diverged. Both stocks are declining after hours. During the regular session, Alphabet ended nearly flat while Tesla closed slightly higher.

After the close, Alphabet announced that its Q2 revenue increased by 14% year-on-year to $96.428 billion, and its earnings per share (EPS) jumped 22% to $2.31. Both figures beat market expectations.

Tesla, on the other hand, fell short of expectations. Q2 revenue decreased 12% year-on-year to $22.5 billion, and EPS dropped 23% to $0.40.

Among other big tech stocks, NVIDIA rose 2.25%, and Meta Platforms also gained around 1%.

TSMC, AMD, ASML, Qualcomm, and ARM also showed gains of roughly 2%.

By contrast, Texas Instruments, which disappointed with its Q2 results, plunged about 13%.

Enphase Energy, a solar energy technology company, reported solid earnings, but guidance missed expectations, leading to a drop of about 14%.

According to FactSet, over 86% of the 105 S&P500 companies that have reported Q2 earnings so far have exceeded expectations.

By industry, all sectors except consumer staples and utilities were strong.

Healthcare jumped more than 2%, while industrials and energy also rose over 1%.

According to the Chicago Mercantile Exchange (CME) FedWatch Tool, the federal funds futures market priced in a 60.3% chance of a 25bp rate cut by September.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell 1.13 points (6.85%) to 15.37.

Hankyung.com Reporter case@hankyung.com