Ahead of the mutual tariff measures to be announced next month by U.S. President Donald Trump, the New York Stock Exchange showed mixed results on the 26th (local time). With the possibility of an economic recession due to the broad tariff rising, the market is focusing on economic indicators such as the core personal consumption expenditures (PCE) price index to be released this week.
As of 10:49 a.m. (local time) on that day, the Dow Jones Industrial Average at the New York Stock Exchange (NYSE) was up 167 points (0.39%) to 42,754.50 compared to the previous trading day.
The Standard and Poor's (S&P) 500 index fell 24.49 points (0.42%) to 5,752.66, while the tech-oriented Nasdaq index dropped 224.21 points (1.23%) to 18,049.82.
Among individual stocks, NVIDIA fell sharply by 4.71%, and Tesla was down 3.85%. Meta (-1.66%), Amazon (-1.52%), and Google's parent company Alphabet (-1.49%) also saw declines.
Investors are paying attention to the announcement of the U.S. country's mutual tariff rates against the world scheduled for the 2nd of next month. Earlier, Secretary of the Treasury Scott Bethan noted in an interview with local media, "We will present a list of tariffs against other countries."
The mutual tariff rates are expected to differ by country, and Secretary Bethan hinted that a higher rate might apply to countries with a trade surplus with the U.S., saying, "We will assign numbers that we believe correspond to each country’s tariffs." However, local media expect the scope of the mutual tariffs to be narrower than anticipated.
However, with President Trump changing policies as easily as flipping a hand, there is no room for relaxation. The pressure of an economic recession caused by tariffs is also suppressing investor sentiment. The consumer confidence index, which shows American consumer sentiment, recorded 92.9 in March, a decrease of 7.2 points from the previous month. The index reflecting expectations for short-term income, business, and employment among Americans fell by 9.6 points to 65.2, the lowest level in 12 years.
The main indicators to be announced afterward include the finalized growth rate of gross domestic product (GDP) for the fourth quarter of last year (27th) and the February core personal consumption expenditures (PCE) price index (28th). According to Bloomberg News, the February core PCE price is expected to rise by 2.7% compared to the same period last year.
Meanwhile, U.S. government bond yields are strong that day. The benchmark 10-year U.S. government bond yield was up 4 basis points (1 basis point = 0.01 percentage points) to 4.35% compared to the previous day, while the 2-year U.S. government bond yield, which is sensitive to monetary policy, rose 3 basis points to 4.01% during the same period.