S&P500 and Nasdaq end down after hitting record highs...Heatwave continues during the midsummer heat [Morning Briefing]

◆ New York Stock Exchange closes lower amid fading momentum from successive trade agreements...S&P500 and Nasdaq hit record highs

The three major indices on the New York Stock Exchange closed lower on the 29th (local time). With the Federal Open Market Committee (FOMC) regular meeting held over two days until the 30th, most trade agreements have been reached between the United States and major countries, leading to an analysis that expectations that had driven the market so far have faded. On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 44,632.99, down 204.57 points (0.46%) from the previous session. The S&P500 index dropped by 18.91 points (0.30%) to close at 6,370.86, while the technology-focused Nasdaq Composite Index slipped by 80.29 points (0.38%) to finish at 21,098.29. Both the S&P500 and Nasdaq touched new all-time intraday highs during the session.

◆ International oil prices soar on U.S. sanctions pressure against Russia

International oil prices rose due to improved U.S. consumer sentiment and fears over potential supply disruptions of Russian crude oil. This was because U.S. President Donald Trump moved up the 'ceasefire deadline' regarding the Russia-Ukraine war, reigniting concerns about a disruption in Russian oil exports. On the New York Mercantile Exchange, the price of West Texas Intermediate (WTI) crude for September delivery jumped $2.5 (3.74%) to settle at $69.21 per barrel. President Trump, on Air Force One returning from Scotland to Washington, D.C., said of the Russia-Ukraine war, "It’s 10 days from today. After that, tariffs and the like will be imposed."

◆ WSJ: "U.S. demands South Korea submit the 'best and final offer'"...Key moment for South Korea-U.S. trade negotiations

With just three days left until the mutual tariff suspension deadline (August 1) proposed by the Trump administration, the Korean government is making a final push in trade talks with the United States. The Wall Street Journal (WSJ) reported that the U.S. side requested South Korea to "put the best and final proposal on the table." According to the WSJ, U.S. Commerce Secretary Howard Lutnick recently emphasized to Korean officials that President Trump needs to be persuaded on why a new agreement with South Korea is necessary. The U.S. side is interpreted as having a negative stance on the proposals offered by South Korea so far and is effectively demanding further concessions.

◆ U.S.-China may extend 'tariff truce' by 90 days...U.S.: "Trump will make the final decision"

While the United States and China reached a partial consensus on extending the tariff truce by 90 days, a final agreement has been postponed. Both sides' negotiating teams discussed the extension, with major economic ripple effects feared if the tariff war resumes, but President Trump said he would decide whether to approve the plan after receiving a briefing on the 30th. Key negotiators, including U.S. Treasury Secretary Scott Besant, U.S. Trade Representative (USTR) Jamieson Greer, and China's Vice Premier He Lifeng of the State Council, have been conducting trade negotiations in Stockholm, Sweden since the previous day, discussing options like extending the tariff suspension measures, which expire next month on the 11th, by an additional 90 days.

◆ Special prosecutor Kim Geon-hee, who warned Yoon with an 'arrest warrant', attempts a second summons today

Special Prosecutor Min Joong-ki's team, investigating various allegations against Kim Geon-hee, will attempt a second summons of former President Yoon Suk-yeol today, after he refused to appear for questioning. While the special investigation team pressured him with the possibility of a warrant and forcible investigation, Yoon's side maintains that he cannot attend due to health reasons. The team has again notified Yoon to appear for questioning at 10 am today. After rejecting the first summons on grounds of health deterioration, which the team considered unconvincing, they pushed again with a new notice only a day later. The special investigation team has indicated a strong stance that they will not hesitate to pursue compulsory measures if Yoon fails to appear again.

◆ Heatwave continues during the 'midsummer heat'

On Wednesday the 30th, which is 'Jungbok' (the second of the three hottest summer days in Korea), very hot weather is expected, with daytime highs forecast to reach around 35°C. The daytime highs are expected to be between 32 and 38°C. The whole country will generally be clear, with gradually increasing clouds from the west. In the afternoon, there is a chance of showers of 5~20mm in northeastern Gyeonggi Province and 5~30mm in central/northern inland and mountainous areas of Gangwon. For some time, waves on seas off Jeju Island, the distant southern West Sea, and the outer southeast coast are forecast to be very high. Strong swells are expected to reach the coasts of Jeju Island, Jeollanam-do, and the southern coast of Gyeongsangnam-do, so extra caution is needed for safety accidents.

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