[Good Morning Market] US Stocks Plunge in One Day... Volatile Market Continues

The US-China tariff war intensified, leading major US stock indices to close sharply lower on the 10th (local time). On the 11th, the domestic stock market is expected to show volatility while maintaining the current index level.

On that day in the New York stock market, the Dow Jones Industrial Average (Dow Index), centered on blue-chip stocks, closed at 39,593.66, down 1,014.79 points (2.5%) from the previous trading day. The large-cap S&P 500 index fell 188.85 points (3.46%) to 5,268.05, and the tech-heavy Nasdaq index plunged 737.66 points (4.31%) to 16,387.31. These indices reversed sharply downward just one day after recording historic gains.

The decline was particularly notable among major tech stocks. Tesla dropped 7.27%, while Apple and Nvidia fell 4.24% and 5.91%, respectively. Alphabet (-3.5%) and Microsoft (-2.3%) also showed weakness.

The market downturn was triggered by concerns over the US raising additional tariff rates on China. The US administration announced that the total additional tariff rate imposed on China is 145%. This includes the previously announced 125% plus an additional 20% related to fentanyl (opioid painkiller) control issues. The tariff war has heightened fears of an economic recession, worsening investor sentiment.

Despite signals of price stabilization, the stock market decline did not stop. The US Consumer Price Index (CPI) for March, released that morning, rose 2.4% year-over-year, below market expectations of 2.5%. This is the lowest level in 4 years and 1 month since February 2021. However, this figure does not reflect tariffs, limiting its impact on expectations that prices could rise rapidly again after next month.

The MSCI Korea ETF and MSCI Emerging Markets ETF, closely related to the Korean stock market, fell 2.74% and 1.72%, respectively. The Philadelphia Semiconductor Index also plunged 7.97%, suggesting that domestic stock market investor sentiment related to this sector is likely to freeze.

Stock market volatility due to tariff uncertainties is expected to continue. Ji-won Kim, a researcher at KB Securities, said, "It is inevitable that the volatility market will persist," adding, "However, rather than a sharp drop lowering the bottom, it seems that selling pressure will be absorbed at the current index level."