[New York Stock Market] Historic Rollercoaster Session Amid Tariff Uncertainty... Mixed Close

Extreme Volatility: Sharp Drop, Rebound, and Decline
Trump: "Not Considering Delay"... Determined to Enforce Tariffs
Warns China of "Additional 50% Tariff" in Response to Retaliatory Tariffs
Criticism from Wall Street: "Disaster", "Economic Nuclear Winter"

The three major indices of the U.S. New York stock market on the 7th (local time) closed mixed after repeatedly fluctuating sharply due to President Donald Trump's mutual tariff turmoil. As President Trump's tariff bombardment sends megaton-level shocks to the U.S. and global stock markets, the market experienced a record-breaking 'rollercoaster market' repeatedly swinging between heaven and hell on tariff-related news. With the full implementation of mutual tariffs scheduled for the 9th, the U.S. stock market is expected to continue extreme volatility depending on negotiations or retaliatory measures.

Reuters Yonhap News

On that day in the New York stock market, the Dow Jones Industrial Average (Dow Index), centered on blue-chip stocks, closed at 37,965.6, down 349.26 points (0.91%) from the previous trading day. The S&P 500 Index, focused on large-cap stocks, fell 11.83 points (0.23%) to 5,062.25, while the Nasdaq Index, centered on tech stocks, rose 15.48 points (0.1%) to close at 15,603.26.

By individual stocks, U.S. electric vehicle maker Tesla fell 2.56%. Heavy equipment manufacturer Caterpillar dropped 2.78%. Apple plunged 3.67%. U.S. Steel surged 16.22% on news that President Trump ordered a review of the acquisition of Nippon Steel.

The stock market showed extreme volatility throughout the day on mutual tariff news. As President Trump maintained his determination to enforce tariff policies, the market, which started sharply down, surged after local media reported that the White House might delay tariffs for 90 days. Then, the White House immediately dismissed the report as 'Fake News,' causing the market to fall again. Every time tariff-related news emerged, the market fluctuated greatly, creating an unprecedented rollercoaster market.

On the day, President Trump stated that he is not considering delaying the mutual tariffs set to take full effect on the 9th and reaffirmed his determination to enforce tariff policies. At a press conference held after a summit with Israeli Prime Minister Benjamin Netanyahu at the White House, when asked about the possibility of delaying mutual tariffs, he replied, "I am not considering it." However, he added, "Tariffs could be permanent, and negotiations could also proceed," leaving room for negotiation with trading partners and partially easing the frozen investor sentiment.

Furthermore, he warned China, which has announced retaliatory tariffs against the U.S. mutual tariff measures, that the U.S. could impose an additional 50% tariff.

President Trump said, "As you know, China has imposed an additional 34% tariff on top of the existing unreasonable tariffs in response to my statements," and threatened, "If China does not withdraw by noon tomorrow, we will impose an additional 50% tariff on top of the tariffs already imposed." Earlier, China announced that it would impose a 34% tariff on U.S. imports in response to the 34% mutual tariffs announced by the U.S. on the 2nd. In response, President Trump threatened to impose an additional 50% tariff on China as a retaliatory measure. If President Trump's warning materializes, the additional U.S. tariffs on China will increase by a staggering 104% since the start of Trump's second term.

As the Trump-led tariff war shows signs of escalating into a chicken game, concerns about a global trade war and economic recession are spreading. Jamie Dimon, chairman of JP Morgan, known as the 'Emperor of Wall Street,' warned, "It could be a disaster in the long term." Bill Ackman, billionaire investor and chairman of Pershing Square Capital, who supported President Trump in last year's election, said, "We are heading toward a self-inflicted 'economic nuclear winter,'" adding, "The president is losing trust among global corporate leaders. This is not what we voted for." Larry Fink, chairman of BlackRock, said in a speech at the New York Economic Club that many CEOs he has spoken with believe the U.S. is currently entering a recession.

Chichard Safferstein, Chief Investment Officer (CIO) of Treasury Partners, said, "The sharp and sudden stock decline is a price revaluation reflecting the impending recession due to tariff burdens," and predicted, "The market will not rebound until tariffs are reduced through negotiations, valuations fall to very attractive levels, and fundamentals improve."

Government bond yields are soaring. The 10-year U.S. Treasury yield, a global bond yield benchmark, rose 20 basis points (1bp=0.01 percentage point) from the previous trading day to 4.19%, and the 2-year U.S. Treasury yield, sensitive to monetary policy, rose 11 basis points to 3.78%. Due to concerns about a tariff-induced recession, investors seem to no longer consider U.S. Treasuries as safe assets and have engaged in large-scale sell-offs.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as the 'fear index' of Wall Street, rose 3.69% from the previous day to 46.98.