[New York Stock Exchange] All Major Indexes Rise on News of Apple's $100 Billion U.S. Investment... Apple Soars 5%

"Trump Announces Apple's $100 Billion Investment"
Apple Leads Gains with 5% Jump Despite Mixed Earnings
Trump Imposes Additional 25% Tariff on India for Russian Oil Imports

All three major indexes on the New York Stock Exchange closed higher on August 6 (local time). The market started the session mixed as it digested mixed corporate earnings, but rebounded after news that Apple would invest an additional $100 billion in the United States, which had a positive impact on the market.

Reuters Yonhap News

On this day, the blue-chip Dow Jones Industrial Average closed at 44,193.12, up 81.38 points (0.18%) from the previous trading day. The large-cap S&P 500 rose 45.87 points (0.73%) to 6,345.06, while the tech-heavy Nasdaq gained 252.87 points (1.21%) to close at 21,169.42.

The key driver that boosted investor sentiment was Apple. Bloomberg News reported that President Donald Trump would announce at the White House that Apple plans to invest an additional $100 billion (about 139 trillion won) in the United States. As a result, Apple's total investment in the United States over the next four years will expand to $600 billion. This investment decision is seen as a result of President Trump's policy stance to revive U.S. manufacturing. Previously, President Trump had warned that if Apple continued to keep its iPhone production base overseas, he would impose tariffs of more than 25%.

Although corporate earnings showed mixed results, they were generally strong. According to market research firm FactSet, 81% of S&P 500 companies reported results that exceeded market expectations.

Brett Kenwell, U.S. investment analyst at eToro, said, "There are many issues to pay attention to in today's investment environment, but corporate earnings remain the main catalyst for stocks," adding, "Although there is a possibility that stock prices could fall due to macroeconomic influences and seasonal factors, this is more likely to present a buying opportunity."

Investors also paid attention to tariff news. President Trump signed an executive order imposing an additional 25% tariff on India for importing Russian oil. Through the executive order, he stated, "The Indian government is currently importing Russian oil directly and indirectly," and, "Accordingly, in accordance with relevant laws, an additional 25% tariff will be imposed on Indian products imported into U.S. customs territory." This measure will take effect within 21 days. As a result, the total tariffs imposed by the United States on India will reach 50%, including the 25% reciprocal tariff scheduled to take effect on the 7th. This ultra-high tariff is seen as both pressure on India amid stalled trade negotiations and as a card to pressure Russia to sign a peace agreement ahead of the deadline for a Ukraine war ceasefire proposed by President Trump.

Michael Green, portfolio manager and chief strategist at Simplify Asset Management, analyzed, "The tariff issue may not be as serious as initially thought," and, "People are starting to recognize that tariffs have different impacts on the United States as an importing country and as a major exporting country, and overall, the situation has calmed down."

By stock, Apple jumped 5.1% following the announcement of additional investment in the United States. Tesla rose 3.62%, and Nvidia gained 0.65%. McDonald's surged 3.03% after posting a surprise second-quarter result. The company's same-store sales saw the biggest increase in about two years. Walt Disney fell 2.66% as revenue missed expectations, although net profit beat forecasts. Snap and AMD plunged 17.15% and 6.42%, respectively, after reporting disappointing results.

U.S. Treasury yields are rising, especially for longer maturities. The 10-year U.S. Treasury yield, the global benchmark for bond yields, is up 3 basis points (1bp=0.01 percentage points) from the previous session to 4.23%. The 2-year U.S. Treasury yield, which is sensitive to monetary policy, is hovering at 3.71%, the same level as the previous day.