[New York Stock Market] Three Major Indices Close Higher on Trade Negotiation Hopes... Dow Up 0.75%

The three major indices on the New York Stock Exchange closed higher on April 29 (local time). News that negotiations among major trading partners, excluding China, were proceeding smoothly appeared to boost investor sentiment.

AFP Yonhap News

On this day, the Dow Jones Industrial Average, which is focused on blue-chip stocks, closed at 40,527.62, up 300.03 points (0.75%) from the previous trading day. The S&P 500 index, which is centered on large-cap stocks, rose 32.08 points (0.58%) to finish at 5,560.83, while the tech-heavy Nasdaq index gained 95.18 points (0.55%) to close at 17,461.32.

The S&P 500 and Dow indices extended their winning streaks to six consecutive sessions. The Nasdaq index, after a slight decline the previous day, returned to an upward trend. Although there was still no progress in trade negotiations between the United States and China, the fact that negotiations with other major trading partners were proceeding smoothly attracted buying interest.

On the occasion of the 100th day of the Donald Trump administration, U.S. Treasury Secretary Scott Besant explained economic policy and stated, "We will establish 18 important trade relationships in the next few weeks," adding, "Setting China aside, 17 are moving forward." Besant particularly pointed out that Asian countries were the most active in negotiations, noting that the outline of a deal with South Korea was emerging and that significant discussions were also underway with Japan.

U.S. Secretary of Commerce Howard Lutnick also stated in an interview with CNBC that the United States had completed a trade agreement with a country, and that only approval from the counterpart's prime minister and parliament remained. However, he did not disclose the name of the country.

Ross Mayfield, investment strategist at Baird, said, "Until a solution to the trade issue is reached, other matters are of little importance," and predicted, "While investors wait for progress in trade talks, the S&P 500 may fluctuate between 5,100 and 5,700."

By sector, no sector rose more than 1%, but all sectors except energy closed higher.

By individual stock, large technology companies were mixed around the flat line, with only Tesla rising more than 2%.

Amazon considered displaying tariff costs next to product prices but abandoned the plan after receiving a protest call from President Trump. In an official statement, the White House described Amazon's plan as "hostile and political." During this process, Amazon's stock price fell by more than 2%, but ultimately closed slightly lower.

General Motors (GM) ended nearly flat. Although all earnings exceeded expectations, the company announced it would review its annual guidance and temporarily suspend additional share buybacks in consideration of the impact of tariffs, which weighed on investor sentiment.

Coca-Cola posted a strong close on first-quarter results that beat market expectations. Despite tariff uncertainties, Coca-Cola maintained its annual guidance.

Economic indicators continued to deteriorate. According to the U.S. Conference Board (CB), the Consumer Confidence Index for April was recorded at 86.0. This is a drop of 7.9 points from March's 93.9, marking the lowest level since the early days of the COVID-19 pandemic.

The U.S. goods trade deficit in March recorded its largest size ever, returning to an increasing trend. This was the result of companies placing large advance orders ahead of the Trump administration's tariff announcement. According to the U.S. Department of Commerce, last month's goods trade deficit was $162 billion, a 9.6% increase from February's $147.8 billion.

The number of job openings in the U.S. for March also fell short of market expectations, indicating a weakening labor market. According to the Job Openings and Labor Turnover Survey (JOLTs) released by the U.S. Department of Labor, the seasonally adjusted number of job openings was 7,192,000. This is the lowest since September last year and also below the market forecast of 7.48 million. Chris Senyek, chief investment strategist at Wolfe Research, said, "The economy is weakening in real time, and corporate investment has been halted due to the impact of tariff policy," adding, "If the upcoming nonfarm payroll report also weakens, this could lead to a stock market decline."

According to the CME FedWatch Tool at the Chicago Mercantile Exchange, the probability that the federal funds rate will remain unchanged until the end of June stood at 35.1% in the federal funds rate futures market. The probability of a 25 basis point cut was reflected at 60.2%.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell 0.98 points (3.90%) from the previous session to 24.17.