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New York Stock Market 'Shock' as Trump Enforces Tariffs... Dow Closes Down 0.75%

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Korea Economic Daily
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  • As President Trump enforced tariffs on Canada, Mexico, and China, major indices of the New York Stock Exchange closed lower.
  • The Dow Jones fell by 0.75%, the S&P 500 by 0.50%, and the Nasdaq index by 0.28%.
  • Apple's stock faced a selling trend due to concerns over iPhone exports, and Nvidia closed at -3.67% amid selling pressure.
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  • The article was summarized using an artificial intelligence-based language model.
  • Due to the nature of the technology, key content in the text may be excluded or different from the facts.

Trump Enforces Tariffs on February 1

Tariffs on Canada, Mexico, China

New York Stock Market's Three Major Indices Close Lower

Photo=Chip Somodevilla / Shutterstock.comPhoto=Chip Somodevilla / Shutterstock.com

The three major indices of the New York Stock Exchange closed lower after a sharp downturn in the early optimistic atmosphere. This was due to the dampened investor sentiment following U.S. President Donald Trump's announcement that he would impose tariffs on Canada, Mexico, and China as scheduled on February 1 (local time).

On the 31st (Eastern U.S. time), the Dow Jones Industrial Average closed at 44,544.66 on the New York Stock Exchange (NYSE), down 337.47 points (0.75%) from the previous session.

The S&P 500 index fell 30.64 points (0.50%) to 6,040.53, and the Nasdaq Composite index dropped 54.31 points (0.28%) to close at 19,627.44.

The optimistic atmosphere in the early session quickly reversed when a press conference was held at the White House. The White House announced at the press briefing that "President Trump will impose tariffs of 25% each on Mexico and Canada, and 10% on China as scheduled on February 1."

This was in response to a foreign media report suggesting that the timing of the tariffs on these countries could be postponed to March.

Trump also stated later that day, "Tariffs on oil and gas, steel, aluminum, and copper will be imposed on Canada by February 18," and "Tariffs will also be imposed on the European Union."

Subsequently, the stock indices turned sharply lower. The Nasdaq index expanded its gains to 1.46% during the session but fell to -0.54% after the White House press conference ended. The volatility was as high as 2 percentage points in a single day, indicating an unstable market.

The major stock indices were rising steadily earlier in the day as the December Personal Consumption Expenditures (PCE) Price Index came out smoothly. Apple's strong performance in the fourth quarter of last year, announced after the market closed the previous day, also supported the optimistic trend.

However, as the White House reaffirmed its stance on enforcing tariffs, concerns about the impact on iPhone exports grew. As a result, the market responded with a selling bias towards Apple.

Nvidia saw increased expectations as CEO Jensen Huang was reported to meet with Trump at the White House that afternoon, but it was swept away by the selling trend, closing at -3.67%.

On the other hand, Microsoft, Amazon, Tesla, Meta, and Alphabet showed gains of around 1%.

Kim Dae-young, Hankyung.com reporter kdy@hankyung.com

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