**Dow Jones 2.50%↓, Nasdaq 4.31%↓**
[Seoul Economy]
U.S. inflation and strong demand in bond auctions were not enough. The stock market closed lower amid concerns over the U.S. and global economy, following revelations that a 10% tariff still applies to various countries and that the tariff rate on China is not 125% but 145%.
On the 10th (local time) in the New York Stock Exchange, the Dow Jones Industrial Average dropped 1,014.79 points (-2.50%) to close at 39,593.66. The S&P 500 fell by 188.85 points (-3.46%) to 5,268.05, and the tech-heavy Nasdaq Composite plunged 737.66 points (-4.31%) to finish at 16,387.31.
That day, the U.S. Department of Labor announced that the U.S. Consumer Price Index (CPI) for March rose by 2.4% compared to the same month last year. This increase is less than the rise in February (2.8%) and fell short of the estimated 2.5%. The March increase is the lowest since February 2021, over four years ago. In particular, from a month-on-month basis, the change was -0.1%, indicating a drop in prices, but it did not boost investor sentiment.
A $22 billion auction of 30-year Treasury bonds conducted by the Treasury Department that day showed higher-than-average bids from general investors, proving demand, but a subsequent selling trend expanded. The recent sell-off in 10-year and 30-year U.S. Treasury bonds is mainly attributed to President Trump’s decision a day earlier to apply a default tariff of 10% for 90 days instead of reciprocal tariffs to countries excluding China.
Bloomberg News stated, “The sharp market fluctuations today, despite the cheers from the previous day, clearly show that the U.S. is still stuck in a trade war with other countries,” adding, “Even if trade negotiations eventually reach an agreement, it will take time for the overall impact of new trade policies to become clear, leaving the dominant sentiments among companies, consumers, and investors as confusion and uncertainty.”