[New York Stock Market] Rise on Possible Car Tariff Exemption Following Phone and PC... Apple Up 2.2%, Ford Up 4%

U.S. Exempts Phones and PCs from Reciprocal Tariffs
Trump Reverses Stance: "Not a Deferral" to "Flexibility"
Hints at Possible Tariff Exemption for Auto Parts
Uncertainty over Tariff Policy Continues

The three major indices of the U.S. New York stock market all closed higher on the 14th (local time). Investor sentiment revived as the U.S. exempted some electronic products such as smartphones and PCs from reciprocal tariffs. President Donald Trump hinted at the possibility of tariff exemptions on auto parts, causing automobile stocks to surge significantly. As President Trump retreated from tariff policies, the recently abnormally soaring Treasury yields showed a sharp decline.

On that day in the New York stock market, the Dow Jones Industrial Average (Dow) focused on blue-chip stocks closed at 40,524.79, up 312.08 points (0.78%) from the previous trading day. The S&P 500, centered on large-cap stocks, rose 42.61 points (0.79%) to 5,405.97, and the Nasdaq, focused on tech stocks, gained 107.03 points (0.64%) to close at 16,831.48.

By stock, Apple rose 2.21%. Following the reciprocal tariff exemption on electronic products announced on the 11th, Apple, which has an iPhone production base in China, was expected to benefit the most, attracting buying interest. Analysts also said that Apple CEO Tim Cook secured this tariff exemption based on his close friendship with President Trump, which pushed Apple's stock price up. Alphabet, Google's parent company, rose 1.3%. Some tech stocks rose early in the session but closed lower. Meta, Facebook's parent company, fell 2.22%, and Amazon showed a 1.48% decline. U.S. automakers General Motors (GM) and Ford jumped 3.48% and 4.07%, respectively, on the possibility of tariff exemptions on auto parts.

President Trump also hinted at the possibility of tariff exemptions on auto parts that day. During a meeting with El Salvador President Nayib Bukele in the White House Oval Office, when asked by reporters whether there were specific goods under consideration for temporary tariff exemptions, he replied, "We are looking for ways to help automobile companies." He added, "They are transitioning to produce parts here that they currently manufacture in Canada, Mexico, and other regions," and said, "They need a little more time." The U.S. imposed a 25% tariff on imported cars starting from the 2nd and plans to impose tariffs on imported car parts from the 3rd of next month. However, about two weeks after the auto tariffs took effect, he hinted at the possibility of tariff exemptions on future auto parts.

President Trump also stated that smartphones could be exempt from tariffs. When asked whether Apple products or smartphones could be exempt from tariffs, he said, "I haven't changed my mind, but I am a very flexible person," adding, "I don't want to hurt anyone. Maybe something might come out." This was a reversal just one day after he personally clarified that "there has been no announcement of tariff exemptions" regarding the reciprocal tariff exemption on electronic products. Earlier, on the 11th, the U.S. Customs and Border Protection (CBP) excluded 20 electronic products, including smartphones, PCs, and hard disk drives, from the reciprocal tariffs imposed by the U.S. on various countries.

Regarding this tariff policy confusion, the market largely views it as President Trump stepping back from a hardline tariff policy. Analysts interpret that the tariff policy was toned down as the U.S. faced a surge in stock and Treasury sell-offs and growing domestic criticism over inflation and recession concerns.

Jed Ellerbrock, portfolio manager at Argent Capital Management, said, "The market believes the administration is probably retreating from extreme tariff policies in some way," adding, "This is gradually good news." Matt Maley, chief market strategist at Miller Tabak, noted, "Investors are beginning to conclude that there are some limits to the aggressive policies the administration can put forward."

However, uncertainty and stock market volatility caused by the inconsistent tariff policies are expected to continue.

Chris Larkin, managing director at Morgan Stanley eTrade, said, "For the short-term rebound to continue, investors will need to keep confirming signals of tariff flexibility from the White House," adding, "Uncertainty remains high, and daily volatility may also remain at elevated levels."

Investors are paying close attention to President Trump's new tariff remarks. Along with the stock market, the Treasury market is also in focus. Due to concerns over President Trump's tariff policy, there has been a flood of sell-offs in U.S. Treasuries, the world's safest asset, and since this led to President Trump's tariff policy retreat, investors are concentrating on the recent abnormal surge in Treasury yields.

U.S. Treasury yields are stabilizing. The U.S. 10-year Treasury yield, a global bond yield benchmark, fell 11 basis points (1bp = 0.01 percentage points) from the previous trading day to 4.38%, and the 2-year Treasury yield, sensitive to monetary policy, moved down 10 basis points to around 3.84%.

This week, major corporate earnings announcements are scheduled, starting with Goldman Sachs on the 14th, followed by United Airlines and Netflix. Key economic indicators will also be released. On the 16th, March retail sales data will be available, and on the 17th, weekly initial jobless claims will be reported. Federal Reserve Chairman Jerome Powell's speech is also scheduled for the 16th. On the 18th, the U.S. financial markets will be closed in observance of Good Friday.