US Stock Futures Rise
Some Reversal of ‘Sell America’ Trend Also Evaluated
Goldman Sachs CEO Warns of Increased Uncertainty
(Seoul = Yonhap News) Reporter Cha Byung-seop = As U.S. President Donald Trump made conciliatory remarks about the Federal Reserve (Fed) chairman, who has been pressuring by raising the stakes in the U.S.-China trade talks, U.S. stock futures and the value of the dollar rose.
According to Bloomberg News on the 23rd (local time), as of 9:27 a.m. Korean time, the S&P 500 and Nasdaq 100 futures of the US stock market were up 1.632% and 1.799%, respectively.
President Trump, after calling Jerome Powell, the Fed chairman, a “loser” on the 21st and repeatedly pushing for a rate cut, stated on the 22nd after the close of the market, “I have no intention to remove him,” and added, “I hope he becomes more aggressive with the rate cut idea.”
He also mentioned the 145% tariff rate imposed on China since his inauguration, saying, “It’s very high,” and “(in the future) it will not remain that high and will go down significantly.”
Earlier, U.S. stocks also showed strength in the regular market on the 22nd due to remarks by U.S. Treasury Secretary Scott Betheune regarding the U.S.-China negotiations.
Secretary Betheune projected at an event that trade tensions with China will ease through future negotiations.
Optimism about progress in U.S.-China trade talks led the Dow Jones Industrial Average (+2.66%), the S&P 500 Index (+2.51%), and the Nasdaq Composite Index (+2.71%) to close up by more than 2% each.
Tesla rose 4.6% during regular hours, and after CEO Elon Musk announced in a conference call following the first-quarter earnings that he would focus on Tesla’s management from next month after completing major projects at the Dogecoin Foundation (DOGE), it surged over 5% in after-hours trading.
The value of the dollar, which had been weak, also rose.
The dollar index, which shows the value of the dollar against six major currencies (euro, yen, etc.), fell to 98.013 the previous day but was trading at 99.403, up 0.485 from the previous session, as of 9:27 a.m. Korean time on the 23rd.
As of 9:37 a.m. Korean time, the yen/dollar exchange rate rose 0.544% to 142.34 yen, and the Swiss franc/dollar exchange rate rose 0.562% to 0.82 Swiss francs.
The price of gold, which had rallied on demand for safe-haven assets, fell.
Gold, which exceeded $3,500 per ounce for the first time the previous day, is moving at around $3,353.36.
The 10-year U.S. Treasury yield, a benchmark for market interest rates, fell to 4.352%.
According to CoinMarketCap, the price of Bitcoin rose 7.04% to $93,211 compared to 24 hours ago.
International oil prices are rising due to the impact of U.S. sanctions on Iran.
The price of West Texas Intermediate (WTI) crude oil for June delivery rose 0.72% to $64.13 a barrel, while the price of Brent crude for June delivery rose 0.70% to $67.91 a barrel.
Chris Weston of Pepperstone Group commented, “Although it’s still early, the market sentiment is definitely changing,” and “The strong ‘Sell America’ trend from the previous day has been partially reversed.”
Concerns about market uncertainty remain.
David Solomon, CEO of Goldman Sachs, said in an interview with CNBC that uncertainty has increased due to the 90-day deferment of U.S. reciprocal tariffs, and he expects increased volatility and pressure on asset prices to continue until investors better understand U.S. trade policy.
Meanwhile, riding on the rise in the U.S. stock market, major stock indices in Asia are also doing well.
According to Yonhap Infomax, as of 9:37 a.m. Korean time, the KOSPI has recovered to the level of the closing price (2,505.86) on the 2nd before President Trump’s reciprocal tariff announcement and is trading at 2,508.86, up 22.22 (+0.89%) from the previous session.
Japan’s Nikkei 225 Average (+1.87%) and Australia’s S&P/ASX200 (+1.53%) also rose.