[Good Morning Stock Market] Trump Tariffs and Constitutional Court Ruling... Increased Volatility in Domestic Stock Market

This week, the domestic stock market is expected to experience increased volatility due to factors such as U.S. President Donald Trump's tariff remarks, the resumption of short selling, and Constitutional Court rulings.

On the 21st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 0.08% to 41,985.35, the S&P 500 index increased 0.08% to 5,667.56, and the Nasdaq Composite Index closed up 0.52% at 17,784.05.

New York Stock Exchange scene. Photo by Getty Images Yonhap News

On that day, the indices opened lower due to "quadruple witching day," when individual stock futures and options and index futures and options expire simultaneously, but turned to a firm close as bargain buying entered the market.

Looking at individual stocks, the so-called "Magnificent 7" (M7), referring to major big tech companies, all rose except for Nvidia (-0.70%). Tesla rebounded sharply by 5.27% compared to the previous session, while Apple (1.95%), Microsoft (1.14%), Meta (1.75%), Amazon (0.65%), and Alphabet A (0.73%) also increased.

The Philadelphia Semiconductor Index, which includes major semiconductor stocks, fell 43.42 points (0.94%) to 4,557.95 compared to the previous session. Nvidia, along with TSMC, ASML, Qualcomm, AMD, and Texas Instruments, dragged the index down.

The Korean stock market, which has recorded gains for three consecutive weeks, is challenging the 2,700 level this week. However, volatility is expected to increase as President Trump's tariff pressure continues and impeachment issues surrounding President Yoon Seok-yeol persist.

Han Ji-young, a researcher at Kiwoom Securities, explained in a report on the 24th, "As Trump mentioned on his personal social media account last Friday that 'April 2 will be Liberation Day,' the timing for imposing reciprocal tariffs is approaching. Although the specific list of countries has not been disclosed, countries with trade surpluses with the U.S., such as Korea, Europe, and China, are being identified as candidates, which could create short-term stock price volatility."

She added that this week, net buying by foreigners and institutions is expected to continue, centered on semiconductor stocks, while rotation among existing key industries such as defense and shipbuilding is likely to persist.

Han said, "Defense stocks have been exposed to short-term negative factors such as a specific company's rights offering, but the momentum of structural increases in defense spending by major countries worldwide, especially in Europe, remains valid, so there is a possibility of bargain buying." She also explained, "The waiting sentiment surrounding domestic unique events such as the possible impeachment trial verdict during the week and the resumption of short selling on March 31 could temporarily create noise in the supply and demand of leading stocks."