[New York Stock Exchange] Mixed Close Amid Trump Tariff Pressure... Dow Down 0.37%

Trump: "Tariffs to Be Imposed from August 1... No Changes"
Reverses Previous Day's Hint at Further Extension
"Announces Tariffs on Semiconductors and Other Products... 50% on Copper, 200% on Pharmaceuticals"

The three major indices on the New York Stock Exchange closed mixed in a narrow range on July 8 (local time). The market failed to find additional upward momentum after U.S. President Donald Trump stated there would be no further changes to the tariff suspension deadline, which he had extended to August 1. Investors remained on the sidelines, awaiting news of progress in follow-up trade negotiations, after President Trump sent tariff letters to 14 countries, including South Korea and Japan, the previous day.

Reuters Yonhap News

On this day, the Dow Jones Industrial Average, which focuses on blue-chip stocks, closed at 44,240.76, down 165.6 points (0.37%) from the previous session. The S&P 500 Index, which tracks large-cap stocks, fell by 4.46 points (0.07%) to 6,225.52, while the tech-heavy Nasdaq Index rose by 5.95 points (0.03%) to close at 20,418.46.

President Trump reversed his statement from the previous day, in which he had suggested the possibility of another extension to the tariff suspension measures set to expire on August 1. On this day, he posted on his own social media platform, Truth Social, saying, "This date (August 1) has not been changed and will not be changed in the future." Previously, President Trump had sent tariff letters to 14 countries, including South Korea and Japan, specifying reciprocal tariff rates of 25% to 40%, and designating August 1 as the effective date. The tariff suspension deadline, which was originally set to expire on July 8, had already been extended once, and until the previous day, President Trump had hinted at the possibility of a further extension. The day before, he had told reporters, "If they call and say they want to do something differently, we would be open to (an extension)."

In addition, President Trump reiterated his plan to impose tariffs by product category. During a cabinet meeting at the White House, he told reporters that he would announce tariffs on pharmaceuticals, semiconductors, and several other items. He stated that copper imports would face a 50% tariff, and that pharmaceuticals would be subject to a 200% tariff in one to one and a half years. Currently, the Trump administration is conducting national security impact investigations on copper, semiconductors, electronics, pharmaceuticals, and lumber under Section 232 of the Trade Expansion Act.

With tariff uncertainty persisting, investors are closely monitoring the progress of future trade negotiations. The European Union (EU) and India, which did not receive letters from President Trump, are reportedly close to reaching trade agreements with the United States.

On Wall Street, some analysts believe the market has developed resilience and a learning effect regarding tariff risks. Bill Merz, Head of Capital Markets Research at US Bank Wealth Management, stated, "Since April, the market has moved beyond the idea that tariffs will have particularly negative effects on growth, earnings, and inflation. There has been a significant shift in investor sentiment in a very short period. As can be seen from stock market prices and various indices nearing all-time highs, investor sentiment has become more optimistic."

Brett Kenwell, U.S. equities and options analyst at eToro, commented, "Although news of a trade war is once again in the spotlight, this does not mean we will see a repeat of the (sharp market declines) of late March and early April." He added, "If there is confidence that negotiations will continue or that the (tariff suspension) deadline will be extended, the market will shrug off related news."

U.S. Treasury yields remained firm. The yield on the benchmark 10-year U.S. Treasury note rose by 1 basis point (1bp = 0.01 percentage point) from the previous day to 4.4%, while the yield on the 2-year Treasury note remained at 3.89%.

By stock, Nvidia rose 1.11%. The company's market capitalization is approaching $4 trillion. Tesla climbed 1.32%. After Tesla CEO Elon Musk announced the formation of a new political party and once again clashed with President Trump, the company's share price had plunged 6.79% just the previous day. HSBC issued a more cautious investment outlook for major banks, leading JP Morgan and Bank of America (BoA) to fall by 3.15% and 3.1%, respectively.