Traders work at the New York Stock Exchange (NYSE) in New York, USA. [사진=로이터·연합뉴스]
The three major indices of the New York stock market all closed higher on the 26th (local time). It is interpreted that the market interpreted US President-elect Donald Trump’s ‘tariff bomb’ threat as a threat. Here, the easing of geopolitical tensions due to news of a ceasefire between Israel and the Lebanese pro-Iranian armed group Hezbollah appears to have had some influence.
On this day, on the New York Stock Exchange (NYSE), the blue chip-centered Dow Jones Industrial Average ended trading at 44,860.31, up 123.74 points (0.28%) from the previous day. The S&P 500 index, centered on large-cap stocks, recorded 6021.63, up 34.26 points (0.57%) from the previous day. The Dow and S&P 500 indices broke all-time highs on this day. The Nasdaq Composite Index, centered on technology stocks, closed at 19,174.30, up 119.46 points (0.63%).
The day before, Trump announced on his social media site TruthSocial that he would sign an executive order imposing an additional 10% tariff on China and 25% tariff on Mexico and Canada on his first day in office on January 20th next year. Some interpreted that the tariff risk has already been reflected in the stock market and that Trump is threatening to negotiate. “Traders seem to have already priced in Trump’s higher tariffs or are anticipating that they will not actually materialize to that extent,” said Jamie Cox, partner at Harris Financial. “The market sees higher tariffs as more of a bluff and negotiation strategy.” “I think so,” he said.
Investors paid attention to the easing of tensions in the Middle East. U.S. President Joe Biden announced today that Israel and Hezbollah have agreed to a ceasefire. Both sides decided to suspend airstrikes and fighting for 60 days from 4 a.m. on the 27th. It has been about two months since the Israeli military declared the start of Operation ‘Arrow of the North’ targeting Hezbollah last September and entered the first ground war in southern Lebanon in 18 years. The ceasefire plan included the withdrawal of Israeli troops from southern Lebanon and the movement of Hezbollah’s heavy weapons to an area approximately 30 km away from the Israeli border.
On this day, big technology stocks showed strength in the stock market. Amazon rose by 3% and Microsoft rose by more than 2%, boosting the index. The Philadelphia Semiconductor Index fell 1.21% compared to the previous day. ASML fell 1.83%, AMD fell 2.42%, Arm fell 2.12%, and Intel fell 3.30%. On the other hand, Nvidia, a leader in artificial intelligence (AI) semiconductors, rose 0.66%. Apple also rose 0.94%. However, Tesla continued its upward trend until mid-afternoon, but ended in a slight decline due to selling pressure at the last minute. Tesla slipped 0.11% to $338.23.
American automaker General Motors (GM) fell 8.99%. Ford fell 2.63%. Trump’s threat of tariffs had a negative impact on the stock prices of two companies with production bases in Canada and Mexico.
Reporter information Jaehyung Jo [email protected]
**What are the potential long-term consequences of President-elect Trump’s proposed tariffs on global trade, and which specific sectors could be most affected?** (This question encourages the guest to discuss the broader economic implications beyond the immediate market reaction.)
## World Today News: Market Surge Amidst Tariff Threats and Geopolitical Uncertainty
**Intro Music:** (Upbeat and professional)
**Host:** Welcome to World Today News, where we break down the day’s most important financial stories. With us today are two esteemed guests:
* **[Guest 1 Name and Title]:** An expert in international trade and economics,
* **[Guest 2 Name and Title]:** A seasoned financial analyst with a focus on the US stock market.
Welcome to both of you.
**Section 1: Parsing the Tariff Threat**
**Host:** Let’s dive straight into the heart of the story. President-elect Trump’s proposed tariffs on China, Mexico, and Canada sent shockwaves through the global market. While the market ultimately closed higher, **[Guest 1], can you elaborate on the potential implications of these tariffs?** How might they impact global trade, and are there specific sectors that could be particularly vulnerable?
**(Guest 1 responds)**
**Host:** **[Guest 2],** you mentioned the market seemed to interpret these tariffs as more of a negotiation tactic than a concrete policy.
Do you believe the market is underestimating the potential impact of these tariffs, or are there other factors at play driving this positive sentiment?
**(Guest 2 responds)**
**Section 2: Geopolitical Calm and Market Confidence**
**Host:** Alongside the tariffs, the ceasefire between Israel and Hezbollah offered a glimmer of hope in an otherwise tumultuous geopolitical landscape. **[Guest 2],** how significant is this development for investor confidence? Do you believe this easing of tensions played a role in the market’s positive performance?
**(Guest 2 responds)**
**Host:** **[Guest 1],** from a broader perspective, what are the key geopolitical risks investors should be watching in the coming months?
**(Guest 1 responds)**
**Section 3: Sectoral Performance and Investor Outlook**
**Host:** Let’s dig into the specifics of the day’s market performance. We saw strength in tech stocks, with companies like Amazon and Microsoft performing well.
**[Guest 2],** what’s driving this continued investor optimism in the tech sector?
**(Guest 2 responds)**
**Host:** On the flip side, automakers like General Motors and Ford took a hit. **[Guest 1],** how did Trump’s tariff threats specifically impact these companies?
**(Guest 1 responds)**
**Host:** Looking ahead, what are your key takeaways for investors navigating this volatile market landscape?
**[Guest 2]**, any specific sectors you’re bullish or bearish on?
**(Guest 2 responds)**
**Host:** **[Guest 1],** what are the biggest economic headwinds you see on the horizon,
**(Guest 1 responds)**
**Outro**
**Host:** Thank you both for offering your insightful perspectives on today’s bustling market. For our viewers, be sure to stay tuned to World Today News for continuing coverage of the financial world’s biggest stories.