[New York Stock Market] Mixed Close... Tech Stocks Rebound Ahead of Nvidia Earnings

Major Indices Start Higher
Tariff Uncertainty Heightens Investor Concerns
Atlanta Fed President: "Monetary Policy Should Remain Restrictive"

In the U.S. New York stock market, major indices showed mixed movements and closed mixed on the 26th (local time). Technology stocks rebounded ahead of Nvidia's earnings announcement, but traditional blue-chip stocks turned weak, resulting in a mixed trend. The major indices started the day with gains, but the market fluctuated as uncertainties over the Trump administration's tariff policy came to the forefront.

In the New York market that day, the Dow Jones Industrial Average (Dow) focused on blue-chip stocks closed at 43,433.12, down 188.04 points (0.43%) from the previous trading day. The large-cap S&P 500 index rose 0.81 points (0.01%) to 5,956.06, and the tech-heavy Nasdaq index closed at 19,075.26, up 48.88 points (0.26%).

The market was shaken by the Trump administration's tariff policy. Economic media CNBC analyzed that uncertainty over President Donald Trump's trade policy heightened investors' concerns. President Trump announced at the first cabinet meeting held that day that tariffs on Canada and Mexico would be implemented, and a 25% tariff would be imposed on the European Union (EU) as well.

Afterwards, the three major indices all turned downward but then attempted a rebound as bargain buying flowed into technology stocks. Nvidia's stock price had fallen more than 8% since the beginning of this year until before the market opened that day and had declined for three consecutive trading days. However, it rebounded 3.67% that day, showing signs of recovering investor sentiment.

Chris Brigati, Chief Investment Officer at investment firm SWBC, said, "Nvidia is a very important leader in the broad market and a stock loved by investors," adding, "Nvidia's earnings provide meaningful guidance for the overall market sentiment."

Tesla's stock continued its weak trend that day. Following an 8.39% plunge the previous day due to poor sales in the European market, Tesla fell another 3.96% that day. Tesla's market capitalization dropped to around $935 billion after falling below the $1 trillion mark the previous day.

Amazon unveiled Alexa Plus equipped with generative AI, but its stock price rose only 0.73%, while Meta, Facebook's parent company, saw its stock rise 2.46% on news of building a $20 billion AI data center.

Among the 'Magnificent 7' (M7) large tech stocks, Nvidia, Microsoft (0.46%), Amazon, and Meta rose, while Apple (2.70%), Alphabet, Google's parent company (1.53%), and Tesla declined.

Palantir, the 'AI defense stock' that recorded the highest return in the S&P 500 last year, fell for five consecutive trading days but rebounded 1.69% that day. Super Micro Computer's stock also surged 12.23%, buoyed by relief after submitting its last year's financial report to the Securities and Exchange Commission (SEC) after the previous day's market close, escaping the risk of delisting from Nasdaq.

Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated that the Federal Reserve's monetary policy should maintain a restrictive stance. Emphasizing the responsibility for price stability, he said, "Monetary policy should maintain a restrictive stance." Regarding concerns about rising inflation, he said, "There has been much progress," and added, "It is unclear whether the consumer price index in January, which exceeded expectations, is a temporary fluctuation or a trend," withholding judgment.