[New York Stock Market] 'Pause' Amid Tariff Uncertainty... Dow Down 0.38%

Trump Urges China to Negotiate Tariffs
Volatility Expected to Continue Amid Tariff Uncertainty
U.S. Treasury Yields Remain Steady

The three major indices of the U.S. New York stock market closed slightly lower on the 15th (local time). With President Donald Trump not announcing any additional tariff measures or statements, the market took a rare "breather" while digesting first-quarter corporate earnings. However, uncertainty surrounding tariff policies continues, and volatility in the stock market is expected to persist going forward.

Reuters Yonhap News

On that day in the New York stock market, the Dow Jones Industrial Average, centered on blue-chip stocks, closed at 40,368.96, down 155.83 points (0.38%) from the previous trading day. The large-cap S&P 500 index fell 9.34 points (0.17%) to 5,396.63, and the tech-heavy Nasdaq index dropped 8.32 points (0.05%) to 16,823.17.

By individual stocks, Bank of America (BoA) rose 3.49% after reporting first-quarter earnings that exceeded market expectations. U.S. aircraft manufacturer Boeing fell 2.39%. The Chinese government, amid escalating tariff conflicts with the U.S., instructed its domestic airlines to halt deliveries of Boeing aircraft, leading to a decline in Boeing’s stock price. Ford and General Motors (GM), which had risen after President Trump hinted at tariff exemptions on auto parts the previous day, fell 2.68% and 1.24%, respectively. Nvidia rose 1.35%.

President Trump urged China, with which the tariff war is ongoing, to negotiate. In a statement released that day, he said, "The ball is in China's court," adding, "China must negotiate with us, but we do not need to negotiate with China." He further claimed, "China wants what we have, the American consumer, just like other countries," and "They need our money." However, the possibility of negotiations with China remains open. White House spokeswoman Caroline Levitt, after reading President Trump’s statement, explained, "We are open to deals with China."

The market took a breather that day as President Trump did not announce any special tariff measures or statements. The previous day, the market had gained momentum on news of mutual tariff exemptions on electronic products such as smartphones and PCs, and President Trump’s hint at possible tariff exemptions on auto parts. However, concerns are rising as the Trump administration shows inconsistent "zigzag" moves regarding tariff policies, increasing uncertainty. Major trading partners and companies find it increasingly difficult to establish negotiation strategies and business plans such as investments due to frequently changing tariff policies. In fact, the U.S. Department of Commerce announced the day after President Trump hinted at possible tariff exemptions for the auto industry that it had launched an investigation into the national security impact of imports of semiconductors and pharmaceuticals.

Larry Tentarelli, founder of Bluechip Daily Trend Report, said regarding tariffs, "The worst-case scenario has already been ruled out," but analyzed, "The problem is that tariffs can become headline news at any time, causing the stock market to drop by 3%."

Steve Eisman, a veteran Wall Street investor famous as one of the protagonists of the movie "The Big Short," said, "Volatility is expected to continue for a considerable period," and analyzed, "The Trump administration has created a situation where it leads negotiations with multiple countries on various issues, and it could take months to reach agreements."

U.S. Treasury yields are mixed within a narrow range. The U.S. 10-year Treasury yield, a global bond yield benchmark, fell 3 basis points (1 bp = 0.01 percentage points) from the previous trading day to 4.32%, while the 2-year Treasury yield, sensitive to monetary policy, rose 1 basis point to 3.84%.

This week, major companies such as United Airlines and Netflix will report earnings. On the 16th, March retail sales data will be released, and on the 17th, weekly initial jobless claims and other key economic indicators are scheduled to be announced. Attention is also focused on Federal Reserve (Fed) Chair Jerome Powell’s speech on the 16th. The U.S. financial markets will be closed on the 18th for Good Friday.