3 Main Indices Slightly Increase Amidst Controversy Over Trump’s Attempt to Control the Fed
U.S. Consumer Confidence Index Slightly Declines in August
‘K-pop Demon Hunters’ Sets a Record for Most Viewed Movie, ‘[Edaily Reporter Kim Kyung-eun] The New York stock market closed with slight gains. Investors are wary of U.S. President Donald Trump’s attempt to control the Federal Reserve (Fed) while awaiting Nvidia’s earnings announcement the following day.’,
◇ New York Stock Exchange Rises Amid Fed Control Controversy from Trump
-On the 26th (local time), the New York Stock Exchange closed with slight gains despite concerns over the Fed’s independence erosion. The Dow Jones Industrial Average rose by 0.30% to 45,418.07, the S&P 500 increased by 0.41% to 6,465.94, and the Nasdaq gained 0.44% to close at 21,544.27.
-Interest shifts to Trump’s attempt to dismiss Fed governors and the upcoming Nvidia earnings announcement.
-Experts suggest that while short-term impact may be limited, the erosion of the Fed’s independence could pose a long-term risk.
◇ Trump Notifies Lisa Cook of Dismissal from Fed…Legal Battle Anticipated
-President Trump notified Fed Governor Lisa Cook of her dismissal over ‘mortgage fraud allegations,’ causing a stir.
-Cook announced plans to sue, stating there is no legal basis, and the Fed did not recognize the dismissal’s effectiveness.
-The market is observing Trump’s future pressure scenarios for interest rate cuts concerning the positions of several Fed governors, including Chairman Powell.
◇ Most of M7, Including Nvidia, Rise…EchoStar Soars by 70%
-Among stocks, Nvidia rose 1.09%, Tesla increased 1.46%, and Apple gained 0.95%.
-AMD rose 2% due to a target price hike, and semiconductor firm Semtech skyrocketed by 15% due to surprising earnings.
-EchoStar, which sold a frequency license to AT&T, surged over 70%.
◇ U.S. Consumer Confidence Index Slightly Declines in August
-The Conference Board, an economic research organization, reported that the U.S. Consumer Confidence Index for August fell to 97.4 from the previous month.
-Consumers pointed to tariffs and job concerns as major factors, and the short-term outlook indicator for consumers fell below the recession signal level of 80, at 74.8.
◇ Exchange Rate, Bonds, and Oil Trends
-Amid concerns over the Fed’s independence erosion, the 30-year U.S. Treasury yield rose to 4.92%, but the 2-year yield fell due to expectations of rate cuts.
-The October Western Texas Intermediate (WTI) crude oil price fell by 2.39% to $63.25, influenced by Trump’s remarks on oil prices.
◇ Netflix’s ‘K-pop Demon Hunters’ Sets Record for Most Viewed Movie
-‘K-pop Demon Hunters’ has become Netflix’s top movie in terms of viewership.
-It surpassed Dwayne Johnson and Ryan Reynolds’ starring movie ‘Red Notice’ with a cumulative 236 million views.
-In terms of overall content, it ranks third after Squid Game Season 1 and Wednesday, with about three weeks left in the tally period, allowing for a possible ranking reversal.
-It also ranked first in the weekend North American box office with a sing-along special screening.
◇ President Lee Jae-myung Visits Hanwha Philly Shipyard…“MASGA Project in Full Swing”
-President Lee Jae-myung, visiting the U.S., attended the naming ceremony of the “State of Maine,” a national security multipurpose vessel ordered by the U.S. Maritime Administration at the Hanwha Philly Shipyard in Philadelphia.
-President Lee remarked, “The MASGA (Make American Shipbuilding Great Again) project will yield a ‘win-win’ outcome for U.S.-Korea shipbuilding.”
-U.S. attendees included Pennsylvania Governor Josh Shapiro and Pennsylvania Congressman Mary Gay Scanlon.
◇ Insurance Industry’s Profit for the First Half Decreases by 15% Compared to Last Year
-According to the Financial Supervisory Service, the net profit of the insurance industry for the first half of this year was 7.975 trillion won, a 15% decrease compared to the same period last year.
-Life insurers’ profit fell by 8.5%, and general insurers’ profit decreased by 19.2%. Shareholders’ equity declined by 0.8% to 141 trillion won due to interest rate declines.
◇ SKT Faces Potential Record Fine for Personal Data Leakage
-The Personal Information Protection Commission reviewed sanctions against SK Telecom for a customer USIM information leakage incident on this day.
-The possibility of imposing a record-breaking fine of up to 300 billion won in revenue was discussed, but the actual level of sanctions may be reduced considering compensatory measures for victims and recurrence prevention plans.
◇ U.S. Tariff Resolution and Consumption Coupons Lead to Improvement in Korean Business Sentiment After Three Months
-According to the Bank of Korea, the Business Sentiment Index (CBSI) for August rose by 1 point to 91.0 compared to the previous month.
-The semiconductor and automobile industries showed favorable performance, and non-manufacturing sectors improved due to consumption coupons and the vacation season.
-However, it remains below the long-term average (100), indicating a still ‘pessimistic’ phase.