[Good Morning Stock Market] US Inflation Stability Relief... Industry-Wise Gains and Losses Amid Tariff War

Strength in Semiconductors and Other Sectors

On the 13th (local time), the US stock market saw large technology stocks gain strength thanks to stable inflation, but volatility increased due to ongoing concerns over a trade war following President Donald Trump's steel tariff imposition. The domestic stock market is also expected to show mixed trends across sectors.

On that day, major indices on the New York Stock Exchange closed mixed. The Nasdaq, centered on technology stocks, rose 212.36 points (1.22%) from the previous trading day to close at 17,648.45, while the S&P 500, focused on large-cap stocks, increased by 27.23 points (0.49%) to finish at 5,599.3. In contrast, the blue-chip Dow Jones Industrial Average (Dow) fell 82.55 points (0.2%) from the previous day to close at 41,350.93.

The US February Consumer Price Index (CPI) showed a modest increase of 0.22% month-over-month, indicating stability, which led to a positive start for the indices. This eased recent concerns about entrenched high inflation, spreading relief across the market. In particular, stocks that had experienced significant declines, such as Tesla (7.60%) and Nvidia (6.43%), surged, reflecting improved investor sentiment. Additionally, Intel (4.56%) and TSMC (3.63%) both rose on prospects of establishing a joint semiconductor manufacturing corporation, and most semiconductor stocks, including Micron (7.41%), AMAT (1.41%), and Lam Research (4.41%), were positively impacted.

However, the Trump administration's continued imposition of tariffs on steel and aluminum, along with retaliatory tariffs announced by the European Union (EU) and Canada, caused mixed reactions among related stocks. Automotive stocks such as GM (-0.78%) and Ford (-1.03%) declined, reflecting concerns over increased input costs due to rising steel and aluminum prices. Conversely, copper mining company Freeport-McMoRan (2.51%), iron ore miner Nucor (0.74%), steel companies US Steel (2.68%) and Steel Dynamics (2.30%), and aluminum producer Alcoa (4.04%) closed higher on expectations of price increases.

Ji-won Kim, a researcher at KB Securities, explained, “The fact that US inflation has not risen is positively influencing the stock market, and relative strength is expected to continue,” but added, “Since this CPI barely reflects tariff impacts, it is necessary to monitor the situation.”

The MSCI Korea Stock Market Exchange-Traded Fund (ETF), closely related to the Korean stock market, rose 2.31%, and the MSCI Emerging Markets ETF increased by 0.55%, likely having a positive effect on the domestic market. The Philadelphia Semiconductor Index also rose 2.45%.