Trump: "Had a call with Korea... Situation looks good"
To China: "Waiting for their call"... Hints at possibility of negotiations
U.S. Treasury: "70 countries in contact... Good deal possible"
Buying momentum on optimism over reciprocal tariff talks... Tech stocks surge
The three major indices of the U.S. New York stock market are rebounding on the 8th (local time), a day before the implementation of reciprocal tariffs by U.S. President Donald Trump, amid expectations for tariff negotiations. President Trump hinted at the possibility of tariff talks with Korea and sent a message expressing a desire to engage in dialogue with China, easing concerns about a global trade war.
As of 10:33 a.m. in the New York stock market that day, the Dow Jones Industrial Average (Dow), centered on blue-chip stocks, was trading at 39,333.69, up 1,368.09 points (3.6%) from the previous trading day. The S&P 500, focused on large-cap stocks, rose 189.22 points (3.74%) to 5,251.47, and the Nasdaq, centered on tech stocks, surged 649.64 points (4.16%) to 16,252.9.
With reciprocal tariffs set to take full effect at 12:01 a.m. on the 9th, expectations for negotiations between the U.S. and various countries are lifting the indices. President Trump stated on his social networking service (SNS) Truth Social that he had a "good call" with Acting President and Prime Minister Han Duck-soo and that "the situation looks good." Regarding China, he said they "want to make a deal" and "we are waiting for their call," leaving the door open for negotiations. The second-term Trump administration's aides are also optimistic about tariff talks. Earlier, U.S. Treasury Secretary Janet Yellen said in an interview with CNBC that about 70 countries are pursuing tariff negotiations with the U.S., adding, "If they come to the negotiating table with a definite proposal, we can make a good deal."
The New York stock market experienced extreme volatility the previous day due to 'fake news' related to reciprocal tariffs. The market, which had plunged on reports from local media that the U.S. might delay the implementation of reciprocal tariffs for 90 days, rebounded sharply. However, the White House immediately dismissed the reports as fake news, causing the indices to fall again. Investor sentiment swung between extremes due to tariff-related factors, and the market recorded the highest trading volume in 18 years with 29 billion shares traded.
President Trump expressed his determination to enforce tariff policies while also leaving room for negotiations with trading partners the previous day. At a press conference following a summit with Israeli Prime Minister Benjamin Netanyahu at the White House, he said he was "not considering" a delay in reciprocal tariffs. However, he mentioned that "there could be permanent tariffs, and there could be negotiations," leaving room for talks after the tariffs take effect. He also warned China, which had announced retaliatory tariffs, of an additional 50% tariff but showed willingness to engage in dialogue by stating on SNS that he was waiting for China's call.
On Wall Street, concerns are growing that U.S. tariff policies could trigger a global trade war and economic recession. Jamie Dimon, chairman of JP Morgan and known as the "Emperor of Wall Street," warned the previous day that it "could be a disaster in the long term." Billionaire investor Bill Ackman, chairman of Pershing Square Capital and a Trump supporter in last year's presidential election, also 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."
Samir Samana, head of global equities and real assets at Wells Fargo Investment Institute, diagnosed, "It seems to have been an oversold zone, and there is hope that the situation can ease from here," but added, "However, we will remain cautious in the short term."
By stock, large tech stocks are on the rise. Nvidia is soaring 7.4%. Meta Platforms, Facebook's parent company, is up 4.36%, and Tesla is rising 6.92%. Amazon and Netflix are also strong, up 4.15% and 4.32%, respectively.
Government bond yields are rising. The 10-year U.S. Treasury yield, a global bond yield benchmark, rose 8 basis points (1bp = 0.01 percentage points) from the previous trading day to 4.24%, and the 2-year U.S. Treasury yield, sensitive to monetary policy, increased 10 basis points to 3.83%.
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