[New York Stock Market] Sharp Drop → Rebound → Another Drop → Bullish... Historic Volatility Ends with 'Closing Higher'

Dow Closes Up 1.56%
S&P 500 and Nasdaq Also End Week Strong Amid Tariff Volatility

The New York stock market ended the week on a strong note on the 11th (local time) after experiencing a historic 'rollercoaster session' throughout the week due to the aftershocks of U.S. President Donald Trump's tariff policy.

On that day, the Dow Jones Industrial Average closed at 40,212.71, up 619.05 points (1.56%) from the previous session.

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The Standard & Poor's (S&P) 500 index closed at 5,363.36, up 95.31 points (1.81%), and the tech-heavy Nasdaq index closed at 16,724.46, up 337.14 points (2.06%) from the previous session.

The S&P 500 index entered a bear market intraday on Monday the 7th, falling more than 20% from its previous high due to the shock of the mutual tariff policy. It rebounded sharply after reports that the Trump administration was considering a 90-day tariff suspension, but then reversed and fell again after the White House confirmed it was fake news, causing wild fluctuations.

On the 9th, when the individual 90-day tariff suspension for countries other than China became a reality, the S&P 500 index surged 9.5% in a single day. This was the third-largest daily gain in the history of the U.S. stock market since World War II.

The following day, on the 10th, the U.S. stock market fell again due to China's retaliatory tariffs. However, despite China's announcement to raise tariffs on the U.S. by 125%, optimism surrounding tariff negotiations emerged, and the market ultimately ended the turbulent week on a strong note.

On a weekly basis, the S&P 500 index rose 5.7%, marking the highest weekly gain since November 2023. Compared to the closing price on the 2nd, just before the mutual tariff announcement, the decline narrowed to about 5.4%.

Apple, the largest company by market capitalization, rose 4.06%, and Nvidia, the leader in artificial intelligence (AI) chips, also closed up 2.97%. Semiconductor stocks such as Broadcom (5.59%) and AMD (5.30%) recorded gains in the 5% range.

Newmont, the world's largest gold mining company, surged 7.91%, buoyed by the gold price rally and Wall Street's upgraded investment ratings.

Meanwhile, U.S. consumer sentiment deteriorated again, and expected inflation surged sharply. According to the University of Michigan, the preliminary consumer sentiment index for April was 50.8. This was a 6.2-point drop from the confirmed figure of 57.0 last month and significantly below the market expectation of 54.5.

The preliminary one-year expected inflation rate rose sharply to 6.7%, up from 5.0% in March. This is the highest level since 1981. The five-year long-term expected inflation also increased from 4.1% in March to 4.4%. The rise in expected inflation was particularly pronounced among independent consumers.

Meanwhile, the U.S. Producer Price Index (PPI) for last month fell sharply, missing market expectations and marking the largest decline in 17 months. According to the U.S. Department of Labor, the seasonally adjusted PPI for March fell 0.4% from the previous month. This was the largest drop since -0.5% in October 2023.