[Good Morning Stock Market] US Stocks Rise on Trump Tariff Relief Hopes... "Korea Expected to Start Higher"

With the Trump administration's decision to waive tariffs on Mexican and Canadian automobiles easing concerns over a tariff war, the Korean stock market is expected to start higher on the 6th.

On the 5th (local time), the three major U.S. stock indices in New York closed higher after three days. The blue-chip-focused Dow Jones Industrial Average (Dow) closed at 43,006.59, up 485.6 points (1.14%) from the previous trading day. The large-cap S&P 500 index rose 64.48 points (1.12%) to 5,842.63, and the tech-heavy Nasdaq index gained 267.57 points (1.46%) to close at 18,552.73.

By stock, automobile companies General Motors (GM) rose 7.22%, and Ford increased 5.75%. Among large tech stocks, Microsoft (MS) rose 3.19%, and Nvidia increased 1.13%.

On the 5th (local time), a trader is working at the New York Stock Exchange in the United States. Photo by Getty Images Yonhap News.

The White House's announcement of the tariff waiver on automobiles led the rebound in the New York stock market. On that day, the White House stated, "We will provide a one-month tariff exemption for all automobiles entering under the United States-Mexico-Canada Agreement (USMCA)," adding, "At the request of companies related to USMCA, the President granted them a one-month exemption to avoid economic disadvantages." Expectations are also spreading that tariff conflicts will be partially resolved along with the possibility of additional tariff exemptions.

Seonghun Lee, a researcher at Kiwoom Securities, said, "High automobile tariffs are not only a burden on the U.S. automobile industry but can also lead to higher automobile consumer prices, which is the background for the tariff waiver," adding, "Going forward, extreme tariff imposition scenarios that would burden domestic industries and the economy in the U.S. will not be pursued."

The Korean stock market is also expected to start higher due to eased tariff concerns. Researcher Lee said, "The tariff waiver on Mexican and Canadian automobiles and expectations for additional tariff exemptions will act as a relief, leading to a higher start," adding, "Recently, shipbuilding and defense stocks, which play a leading role in the domestic stock market, will continue to rise due to the Trump trade."

Ji-won Kim, a researcher at KB Securities, said, "The easing of tariff concerns is expected to have a positive impact on the domestic automobile industry. The resumption of negotiation movements for ending the Ukraine war is also favorable for the stock market," but added, "However, President Trump emphasized his intention to continue pushing tariff plans in his first congressional speech. We need to monitor Trump's policy trends and approach selectively."