▲ U.S. Nasdaq Market
The uncertainty in the market rose as U.S. President Donald Trump’s tariff policies fluctuated within a day, leading to a decline in the three major U.S. stock indices on the New York Stock Exchange on the 6th local time.
As a result, the three major indices, which have been on a declining trend recently, fell to the level of November 5 last year, the day of the U.S. presidential election, giving back all the gains known as the “Trump Effect” that came with Trump’s election.
Notably, investor sentiment deteriorated, leading to significant losses in AI-related technology stocks, which were already facing overvaluation concerns.
On this day, the S&P 500 index on the New York Stock Exchange closed at 5,738.52, down 104.11 points (-1.78%) from the previous day, and the tech-heavy Nasdaq index closed at 18,069.26, down 483.48 points (-2.61%).
The S&P 500 index dropped to its lowest level in four months since early November last year, falling below the level on the U.S. presidential election day (5,782.76).
The Nasdaq index continued its downward trend since the end of last month, entering a technical correction phase with a drop of more than 10% from its recent peak (closing value on December 16 last year).
This drop is below the closing value on the U.S. election day (18,439.17), reversing the gains achieved after Trump’s election.
The Dow Jones Industrial Average also fell, closing at 42,579.08, down 427.51 points (-0.99%) from the previous day.
The gain since November 5 last year (42,221.88) narrowed to 0.8%.
The New York Stock Exchange declined further upon the news that the U.S. government adjusted tariffs that had been imposed at 25% on goods from Mexico and Canada since the 4th, announcing a 1-month exemption on many products.
President Trump signed an executive order exempting tariffs on products covered by the United States-Mexico-Canada Agreement (USMCA) through April 2.
Concerns arose that these tariffs would drive up consumer product prices in the U.S., such as automobiles and agricultural products, which led related industries to request a reconsideration of the tariffs from President Trump.
Instead of reassurance, investors felt uneasy due to the Trump administration’s trade policy reversals within a day, increasing market anxiety.
Meanwhile, U.S. Treasury Secretary Scott Bossent emphasized in a speech at the New York Economic Club that having access to cheap products is not the essence of the “American Dream” and that they will apply economic pressure not only on adversaries but also on allies who do not align with Trump’s global vision.
Investor anxiety most significantly affected AI and semiconductor-related technology stocks, which have been subject to ongoing overvaluation concerns.
Nvidia and Broadcom fell around 6%, while Palantir, an “AI defense stock,” dropped 10.7%.
Marvell Technology plummeted 19.8% despite strong fourth-quarter results, as its performance outlook fell short of expectations.
The CBOE Volatility Index (VIX), known as the “fear index,” rose 2.94 points to 24.87.
(Photo = Getty Images Korea)