[New York Stock Market] Steel Stocks Rise Together as 'Steel Tariff Bomb' Concerns Fade... Steel Stocks ↑

Trump Announces 25% Tariff on Steel and Aluminum
Steel Stocks Soar... U.S. Steel Up 4.79%
Consumer 1-Year and 3-Year Inflation Expectations Hold at 3%
Powell to Testify Before Congress for Two Days Starting on the 11th
Key CPI, PPI, and Retail Sales Data to Be Released This Week

The three major indices of the U.S. New York stock market all closed higher on the 10th (local time). Investors shrugged off the previous day's threat of a 'steel tariff bomb' by U.S. President Donald Trump and awaited economic indicators to be released this week. Along with Federal Reserve (Fed) Chair Jerome Powell's congressional testimony over two days starting on the 11th, this week will see the release of January inflation and retail sales data.

On this day in the New York stock market, the blue-chip-focused Dow Jones Industrial Average (Dow) closed at 44,470.41, up 167.01 points (0.38%) from the previous trading day. The large-cap-focused S&P 500 index rose 40.45 points (0.67%) to 6,066.44, and the tech-heavy Nasdaq index gained 190.87 points (0.98%) to close at 19,714.27.

By stock, shares related to President Trump's announcement of steel and aluminum tariffs rose across the board. U.S. Steel jumped 4.79%. Following Trump's statement at the U.S.-Japan summit on the 7th that Nippon Steel would invest rather than acquire U.S. Steel, he said the previous day, "No one can hold a majority stake in U.S. Steel." Nucor rose 5.62%. Cleveland-Cliffs and Alcoa increased by 17.93% and 2.21%, respectively. Nvidia rose 2.87%, and Alphabet, Google's parent company, showed a 0.57% gain.

President Trump announced plans the previous day to impose a 25% tariff on all steel and aluminum imports. He said, "Any steel coming into the U.S. will be subject to a 25% tariff," adding, "The same goes for aluminum." This is in addition to existing steel and aluminum tariffs. During his first term, Trump also applied Section 232 of the Trade Expansion Act, imposing a 25% tariff on steel products and a 10% tariff on aluminum products for national security reasons.

Trump is expected to announce plans for reciprocal tariffs on the 11th or 12th. Reciprocal tariffs mean that the U.S. would impose tariffs on foreign imports at the same rate that other countries impose on U.S. exports. This is likely to be applied differently to countries like South Korea, which have free trade agreements (FTAs) that significantly reduce tariffs on U.S. goods, and countries with high tariffs on U.S. imports.

Fabio Bassi, an analyst at JP Morgan, said, "Volatility surrounding deep-sea issues and concerns about tariffs do not derail our positive outlook on risk assets." He added, "We expect volatility to continue in the short term due to tariff headlines and the possibility of major legislation passing in April, but we maintain our year-end S&P 500 target of 6500."

Amid rising concerns about inflation rebound, the New York Federal Reserve released a survey showing little change in consumers' inflation expectations. According to the New York Fed, the median expected inflation for the next one and three years remained at 3%, unchanged from December last year.

Investors are also focusing on key economic indicators to be released this week. On the 12th, the Consumer Price Index (CPI) will be published, followed by the Producer Price Index (PPI) on the 13th. Last month, the CPI is expected to have risen 2.9% year-over-year, and the PPI 0.2% month-over-month, maintaining the previous month's increase. January retail sales, to be announced on the 14th, are expected to have increased at the same level as the previous month, indicating a slowdown in growth. Retail sales in December last year rose 0.4% month-over-month. Chair Powell will appear before both houses of Congress for two consecutive days starting on the 11th to deliver the semiannual monetary policy report.

Chris Larkin, Managing Director of Investments at Morgan Stanley eTrade, analyzed, "Inflation data, Chair Powell's congressional testimony, and tariffs will all drive market trends."

Bond yields are moving in a narrow range. The U.S. 10-year Treasury yield, a global benchmark for bond yields, rose 1 basis point (1 bp = 0.01 percentage points) to 4.5% from the previous trading day, while the 2-year Treasury yield, sensitive to monetary policy, remained steady at 4.27%.