[Good Morning Market] New York Stocks Rally on US-UK Tariff Deal... Domestic Market Also Expected to Rise

US Withdraws 25% Tariff on UK Automobiles
High-Level US-China Trade Talks Scheduled
Domestic Stock Market Expected to Open Higher on Optimism

Overnight, all three major indices on the New York Stock Exchange closed higher following the announcement of a trade agreement between the United States and the United Kingdom. The domestic stock market is expected to open higher, supported by positive indicators regarding the U.S. administration's tariff issues, which had previously exerted downward pressure.

On the 8th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 41,368.45, up 254.48 points (0.62%) from the previous trading day.

New York Stock Exchange. Reuters Yonhap News

The S&P 500 index, which is focused on large-cap stocks, also rose by 32.66 points (0.58%) to close at 5,663.94. The tech-heavy Nasdaq Composite Index jumped by 189.98 points (1.07%) to close at 17,928.14.

Shares of major companies also climbed across the board. Nvidia (0.26%), Alphabet (1.92%), Amazon (1.79%), Meta (0.20%), Qualcomm (0.55%), Microsoft (1.11%), and Apple (0.63%) all ended the session higher.

Strength was particularly notable in the electric vehicle sector. Rivian rose by 7.55%, and Lucid gained 2.67%. Tesla shares closed at $284.82, up 3.11%.

On this day, investors focused on the trade negotiations between the United States and the United Kingdom. Earlier, President Donald Trump announced at the White House that a trade agreement had been reached with the UK.

According to the announcement, the United States withdrew the 25% tariff imposed on British automobiles. Only up to 100,000 vehicles per year will be subject to a basic tariff of 10%. In return, the United States secured improved access to the UK market for agricultural and livestock products, and achieved a reduction in the average tariff rate on U.S. goods from 5.1% to 1.8%.

This is the first agreement reached since the United States introduced reciprocal tariffs on most countries. The announcement boosted indices by raising expectations for an easing of U.S.-China tensions and for future trade negotiations.

President Trump's remarks that the first high-level U.S.-China trade talks, scheduled to be held in Geneva, Switzerland for two days starting on the 10th, would be "substantial," also fueled optimism.

The domestic stock market on the 9th is expected to open higher due to the impact of the U.S.-UK trade agreement. In addition, a high-level trade meeting between the United States and China is scheduled for the 10th (local time), and expectations for a resolution of tariff issues are likely to be reflected in the market.

In a report released on this day, iM Securities stated, "Since the main driver of the market rally was the progress in substantive tariff negotiations, investor sentiment in the domestic stock market could also improve, especially for large export stocks such as automobiles and semiconductors. The fact that Bitcoin, a representative risk asset, surged by over 6%, reflecting improved risk appetite, is also expected to have a favorable effect on the domestic stock market."

However, the report added, "It is important to remain cautious against excessive optimism, considering that the universal tariff of 10% still acted as a lower bound, and that gains were limited in the latter part of the U.S. trading session due to concerns about elevated index levels."