The New York Stock Exchange closed mixed after a rollercoaster ride of sharp declines and surges amid concerns about mutual tariffs. The Nasdaq managed to rebound, while the Dow and S&P 500 fell.
On the 7th (local time), the Dow Jones Industrial Average closed down 349.26 points (0.91%) at 30,965.60, and the S&P 500 index recorded a drop of 11.83 points (0.23%) to 5,062.25. In contrast, the Nasdaq index finished up 15.48 points (0.10%) at 15,603.26.
The market sharply declined in the early session but rebounded sharply after reports that "President Trump is considering a 90-day tariff reprieve for countries other than China." The Nasdaq temporarily rose more than 4%, but it shifted back into a downward trend as the White House dismissed this as "fake news."
The Dow saw fluctuations of more than 2,595 points between its highest and lowest intraday points, recording the largest intraday variation in history, while the S&P 500 and Nasdaq also fluctuated around 4%. Major tech stocks like NVIDIA and Palantir led the Nasdaq's recovery.
President Trump reaffirmed that if China does not withdraw its retaliatory tariffs by the 8th, an additional tariff of 50% will be imposed. He noted, "I will negotiate immediately with countries other than China," and Treasury Secretary Scott Vessenet said, "More than 50 countries are responding positively to negotiations."
Among the 'Magnificent 7', NVIDIA (3.53%) and Meta (2.28%) increased, while Apple (-3.67%) and Tesla (-2.56%) declined. Bitcoin-related stocks MicroStrategy (-8.67%) and Coinbase (-2.04%) also showed weakness. Conversely, U.S. Steel surged 16.22% due to the acquisition issue with Japan's Shin-Etsu.
Of the 11 sectors in the S&P 500, only technology (0.32%) and communication services (1.03%) rose, while all other sectors fell. However, the losses were significantly reduced compared to the previous day.
The volatility index (VIX) of the Chicago Options Exchange recorded an increase of 3.69% to 46.98, surpassing the 50 mark during the session, reflecting fear in the market. KT's Katie Stockton warned, "Such extreme levels are rare," adding that attempts to rebound could also be a 'head fake.'
Meanwhile, Federal Reserve officials are maintaining a tightening stance amid remarks about price pressures, but the market continues to build expectations for interest rate cuts. According to the CME FedWatch, the probability of a cut of more than 25 basis points in the first half of the year has been reflected at 95.7%, and the possibility of more than three cuts within the year reached 86.8%.