[Good Morning Stock Market] Mixed Close Despite US Consumer Price Increase

Powell's Remarks and Exclusion of Auto Tariffs Help Limit Losses

On the 13th (local time), major indices on the U.S. New York stock market closed mixed near the flat line despite the shock from the Consumer Price Index (CPI) announcement, as concerns eased due to the Federal Reserve's (Fed) stance. News that automobiles and pharmaceuticals may be excluded from U.S. reciprocal tariffs is expected to have a positive impact on related domestic stocks.

On that day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average (Dow) closed at 44,368.56, down 225.09 points (0.5%) from the previous trading day. The S&P 500 index fell 16.53 points (0.27%) to 6,051.97, while the Nasdaq Composite index rose 6.09 points (0.03%) to 19,649.95.

January's U.S. CPI unsettled the market that day. With a 0.47% increase month-over-month exceeding market expectations, Treasury yields surged and the dollar strengthened, freezing investor sentiment. However, Fed Chair Jerome Powell’s expression of confidence in the economy had a positive effect, leading to a rebound mainly in the Nasdaq. Powell appeared before the House Financial Services Committee, stating regarding the economy, “If productivity growth continues, the growth rate will be 2.0 to 2.5%.” He also said, “We will maintain a tight monetary policy stance for the time being,” continuing a cautious approach to monetary easing following the previous day.

Among individual stocks, Tesla led the reduction in market losses with a 2.44% rise. The increase widened after Republican House Speaker Mike Johnson mentioned that automobiles could be excluded from reciprocal tariffs. Rivian (0.32%), Lucid (6.69%), as well as Chinese electric vehicle makers Nio (4.21%), Xiaopeng (3.29%), and Li Auto (4.91%), along with GM (2.12%) and Ford (0.22%), also rose.

On the other hand, Nvidia (-1.25%) declined due to intensified competition following mentions of proprietary chips by major tech companies and ongoing concerns about Oracle (-2.80%), OpenAI, and SoftBank’s Stargate project. Additionally, Micron (-2.55%), TSMC (-1.13%), Microsoft (-0.58%), and Alphabet (-0.88%) also fell.

The MSCI Korea Stock Market Exchange-Traded Fund (ETF), closely linked to the Korean stock market, rose 0.16%, and the MSCI Emerging Markets ETF increased by 0.55%. The Philadelphia Semiconductor Index also rose 0.21%, suggesting a favorable wind for the domestic market.

Ji-won Kim, a researcher at KB Securities, stated, “The U.S. CPI announcement has heightened interest in the Fed’s inflation response policy, and the expectation that the resumption of rate cuts will be delayed is gaining weight. News that automobiles and pharmaceuticals may be excluded from U.S. reciprocal tariffs is expected to have a positive impact on related domestic stocks.”