The New York Stock Exchange closed higher just before U.S. President Donald Trump's announcement of reciprocal tariffs. The market showed strength as evaluations emerged that previous concerns regarding tariffs were excessive.
On the 2nd (Eastern Time), the Dow Jones Industrial Average closed at 42,225.32, up 235.36 points (0.56%) from the previous session at the New York Stock Exchange (NYSE). The large-cap benchmark S&P 500 index rose 37.90 points (0.67%) to close at 5,670.97, while the technology-heavy Nasdaq Composite Index closed at 17,601.05, up 151.15 points (0.87%).
The Dow Jones Industrial Average succeeded in rebounding after one day, the S&P 500 index rose for three consecutive trading days, and the Nasdaq index increased for two consecutive trading days. However, the Nasdaq index is approximately 13% lower than its all-time high at the end of last year.
President Trump announced measures that impose reciprocal tariffs of 10% or more on all countries shortly after the market closed. A tariff of 25% will be applied to South Korea.
U.S. Treasury Secretary Scott Vessen said the day before to some members of Congress that the reciprocal tariffs would act as a "ceiling." It is anticipated that the highest applicable tariff rate will be announced, followed by negotiations with various countries.
Amid this, among the large tech group "Magnificent 7" (M7), Nvidia (0.25%), Apple (0.31%), Tesla (5.33%), and Amazon (2%) saw gains, while Microsoft (0.01%), Alphabet (0.02%), and Meta (0.35%) declined.
Tesla's stock rose on expectations that CEO Elon Musk would soon step back from political activities and return to the company, while Amazon saw an increase after submitting a proposal for the acquisition of U.S. operations of the Chinese video platform TikTok.