The three major stock indices of the New York stock market closed higher. It appears that the expectations for future negotiations were lifted by the conclusion of a broad trade agreement between the United States and the United Kingdom.
On the 8th (local time), the Dow Jones Industrial Average closed at 41,368.45, up 254.48 points (0.62%) from the previous session at the New York Stock Exchange. The Standard & Poor's (S&P) 500 index rose 32.66 points (0.58%) to close at 5,663.94, while the tech-heavy Nasdaq index ended at 17,928.14, up 189.98 points (1.07%).
On that morning, U.S. President Donald Trump held a press conference in the Oval Office to announce the results of negotiations with the United Kingdom.
According to President Trump, the United States will withdraw the 25% tariff on cars imposed on the United Kingdom and will impose a 10% tariff on only 100,000 units annually. Additionally, a 25% tariff on British steel and aluminum will be eliminated. In response, the United Kingdom agreed to open its markets for ▲ ethanol ▲ beef ▲ agricultural products ▲ machinery.
As a result, the United States achieved greater access to the British market for agricultural products and lowered the average tariff rate on American goods from 5.1% to 1.8%.
Furthermore, expectations for talks between China and the United States are also growing.
This meeting will be the first negotiation between the United States and China since the tariff war initiated by President Trump. Trump noted, "The meeting with China this weekend will be substantive, and China is hoping to do something," stimulating anticipation.
By sector, there was a mixed trend. Consumer discretionary, energy, and industrials rose by more than 1%.
"The Magnificent 7," referring to seven major technology companies, were all strong. Tesla rose by more than 3%, and Apple and Amazon also saw gains in the 1% range. Microsoft maintained a market capitalization of over $3 trillion (approximately 4,216.5 trillion won).
Alphabet rebounded slightly after a sharp 7% drop the previous day. It appears that bargain buying occurred after Alphabet issued a rebuttal to remarks by Apple’s institutional sector head, who lamented that search engines like Google would eventually be replaced by artificial intelligence (AI).
Meanwhile, President Trump publicly targeted Jerome Powell, Chair of the Federal Reserve.
In the morning, he attacked Powell as "a fool who knows nothing," and in the afternoon, he criticized by saying, "It feels like talking to a wall." He then indicated, "Lowering interest rates will act like 'jet fuel' for the economy, but Powell does not want that," adding, "It seems he doesn’t love me."