The New York Stock Exchange in the United States opened with a decline on the 1st. The drop is interpreted as related to the upcoming mutual tariff imposition day (2nd), named 'American Liberation Day' by President Donald Trump. Newly reported indicators also detected signs of a contraction in the manufacturing industry and a cooling labor market, adding pressure to the market.
As of 9:56 a.m. on the 1st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average, representing a group of blue-chip stocks, showed a decline of 224.36 points (0.53%) to 41,777.40. The benchmark Standard & Poor's (S&P) 500 index fell by 15.32 points (0.27%) to 5,596.53, while the technology-focused Nasdaq Composite Index decreased by 34.60 points (0.20%) to 17,264.69.
The volatility index (VIX), compiled by the Chicago Board Options Exchange (Cboe), indicated a rise of 0.67 points (3.01%) to 22.95 compared to the previous day. As risk aversion increased, demand shifted towards U.S. government bonds. Consequently, the yield on the 10-year U.S. government bonds dropped to 4.133%, a decrease of 11.2 percentage points from the previous day.
Earlier, the three major indices finished mixed after a strong rebound the previous day. As the announcement of mutual tariffs approached, there was a renewed wave of selling in technology stocks during the early trading session, but low-priced buying power flowed in, led by blue-chip stocks.
On this day, tariff uncertainties appear to have burdened the stock market. President Trump is set to announce mutual tariffs on the 2nd, one day later. Trump noted, 'All countries are the target,' but the substantive targets, scope, and scale remain undisclosed. Treasury Secretary Scott Bessen stated that the 'Dirty 15' countries that cause trade deficits would be targeted, while the Office of the United States Trade Representative (USTR) identified 21 countries engaging in unfair trade practices as primary targets.
The Washington Post reported that 'the Trump administration has prepared a draft to impose tariffs of around 20% on most goods imported into the United States,' noting that 'a final decision has not yet been made, but it is a strong possibility.'
New indicators released on this day are also applying downward pressure to the market. The Institute for Supply Management (ISM) reported that the manufacturing Purchasing Managers Index (PMI) for March was 49, which fell short of both the market expectation (49.5) and the previous month’s figure (50.3). This suggests that the industry has shifted back to a contraction phase.
Meanwhile, the job openings reported by the U.S. Department of Labor for February stood at approximately 7.57 million, also falling below the market expectation (7.63 million). This is interpreted as a signal of a slowdown in the labor market.
On this day, European stocks are showing a parallel upward trend. The pan-European index STOXX 600 rose by 0.57%, the German DAX index by 0.93%, and the British FTSE index by 0.26%.
International oil prices are also on the rise. The price of the near-term May futures of West Texas Intermediate (WTI) crude oil increased by 0.28% to $71.68 per BARREL, while the price of the global benchmark Brent crude for June futures rose by 0.28% to $74.98 per BARREL.