Concerns about a trade war and expectations for negotiations regarding the new tariffs from U.S. President Donald Trump are intertwining, leading the New York stock market to start mixed.
As of 9:35 a.m. Eastern Time on the 3rd, the Dow Jones Industrial Average is trading at 44,340.98, down 65.38 points from the previous session on the New York Stock Exchange (NYSE). Conversely, the S&P 500 index has risen by 0.61 points (0.01%) to 6,230.59, and the Nasdaq index is up 41.69 points (0.20%) at 20,454.21.
Earlier, President Trump notified that he would impose new tariffs on imported goods from at least 14 countries, including Korea and Japan. However, the day before, he postponed the implementation of additional tariffs on some countries, initially set for July 9, to August 1, and noted, "If they come to us in other ways, we will also respond in an open manner," leading to a perception in the market that this tariff measure might not be as severe as initially feared.
In particular, some investors believe that the worst phase of the trade war between the U.S. and major trading partners has already passed. Adam Parker, Chief Executive Officer of Trivarius Research, said, "It is completely uncertain whether this measure will actually be implemented or which corporations will be directly affected," adding, "This decline appears to be a correction following some profit-taking near the index peak."
The market calmed down after President Trump's remarks the previous day. He stated that the implementation of additional tariffs on some countries, initially planned for July 9, would be postponed to August 1, and indicated, "This date is not 100% confirmed." He further added, "If they come to us in other ways, we will also respond in an open manner."
By sector, most are rising, with energy and healthcare up 0.3% and industrials and materials climbing 0.2%. However, utilities fell 1.4%, and consumer staples decreased by 0.5%.
By stock, Nvidia is up 0.4% today, approaching a market capitalization of $4 trillion. In contrast, solar-related stocks are all declining following the news that President Trump signed an executive order aimed at reducing green energy subsidies. Sunrun's stock is down 10%, Enphase Energy is down 5%, and First Solar is down 4%.
European stock markets are also uniformly rising. The Euro Stoxx 50 index has risen by 0.13%. The Germany DAX index is up 0.31%, the UK FTSE index has increased by 0.17%, and the France CAC 40 index is up 0.02%.