[Good Morning Stock Market] "New York Stock Market Staggered by Tariff Enforcement... Korean Stock Market Also Affected"

On the 3rd (local time), the US stock market in New York plummeted. This was influenced by President Donald Trump’s announcement that the 25% tariffs on Mexico and Canada would be implemented as scheduled. On the 4th, the Korean stock market is also expected to experience increased volatility due to the sharp decline in the US market.

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On that day, in the New York stock market, the Dow Jones Industrial Average (Dow Index), which focuses on blue-chip stocks, closed at 43,191.24, down 649.67 points (1.48%) from the previous trading day. The S&P 500 Index, centered on large-cap stocks, fell 104.78 points (1.76%) to 5,849.72, and the Nasdaq Index, focused on technology stocks, dropped 497.09 points (2.64%) to 18,350.19.

The sharp decline is interpreted as a result of President Trump’s insistence on tariffs. The three major New York stock indices showed an upward trend early in the session. However, when President Trump announced Taiwan’s TSMC, the world’s largest foundry (semiconductor contract manufacturing) company’s investment plan in the US at the White House, he responded to reporters’ questions about tariffs by saying, "There is no room for negotiation with Mexico and Canada," and "Everything is ready and will take effect tomorrow."

The domestic stock market is also expected to be affected. Ji-won Kim, a researcher at KB Securities, said, "Last month, the domestic stock market performed well compared to the global market, but last week it plummeted along with the US market, and with the US market’s further sharp decline the day before, preparations for selling pressure are necessary." He added, "This week, with the tariff implementation, China’s Two Sessions, Mobile World Congress (MWC), the Beige Book, and the European Central Bank (ECB) among many major events scheduled, there is a possibility of further increased volatility."

Especially with various events scheduled this week, the domestic stock market is expected to see expanded volatility. Jun-gi Jo, a researcher at SK Securities, explained, "From the perspective of the domestic stock market, many major indicator schedules are set for this week, so depending on the results, further deterioration of sentiment cannot be ruled out." He added, "China’s Two Sessions open from today, and there are also manufacturing Purchasing Managers’ Indexes (PMI) for the US and Eurozone, as well as US employment data." He further noted, "The ECB also has a scheduled interest rate decision, and a 25 basis point cut is highly likely this time as well."

The securities industry forecasts that during periods of high volatility, it will be effective to focus on sectors with clear growth potential. Researcher Jo emphasized, "As can be seen from the volatility arising from weekend movements in the virtual asset market and additional tariffs imposed by China, the Trump noise continues." He stressed, "If it is a period where it is difficult for all stocks to rise together as the index goes up, then the side with clear catalysts and where demand can concentrate, such as shipbuilding or defense, may be perceived as an umbrella to avoid rain in the short term."