[New York Stock Market Close] All Down Amid Trump Tariff Drama... Focus on CPI

# Major Indices Decline Amid Tariff Tensions on Wall Street NEW YORK (Newspim’s Kim Min-jeong) – Major indices on the New York Stock Exchange closed lower on the 11th (local time) as the ongoing tariff wars led by President Donald Trump fueled investor uncertainty. The market reacted to the news that Canada would impose additional charges on electricity sent to the U.S. Following this, President Trump decided to increase tariffs on Canadian steel and aluminum by 50%, intensifying concerns among investors about the tariff disputes between the two countries. On the NYSE, the Dow Jones Industrial Average fell 478.23 points (1.14%) to close at 41,433.48. The S&P 500 Index, dominated by large-cap stocks, declined 42.49 points (0.76%) to 5,572.07. The tech-heavy Nasdaq Composite Index dipped 32.23 points (0.18%) to finish at 17,436.10. # Tariff Policies Remain in Focus Market participants continued to monitor President Trump’s tariff policies closely. The previous day, Ontario announced a 25% additional charge on electricity sent to New York, Minnesota, and Michigan. In response, Trump declared an increase in tariffs on Canadian steel and aluminum from 25% to 50% effective from the 12th. However, after Ontario announced a temporary suspension of the additional electricity charges, the Trump administration also decided to delay the tariff hike. Analysts emphasized that the uncertainty surrounding Trump’s tariff policies continues to create market volatility. Slate Stone Wealth’s Chief Market Strategist Ken Polcari commented, “It's creating anxiety and hesitation in the market, with actions being taken first and responses considered later. That’s what we’re seeing now.” # Brief Respite from Ukrainian Ceasefire Report The three major indices briefly trimmed their losses and some even rebounded on news that Ukraine had agreed to a U.S. ceasefire proposal. However, the prolonged uncertainty over tariffs led the indices to slide once again. Chris Fasciano, Chief Market Strategist at Commonwealth Financial Network, noted, “The market has been searching for some reason for optimism since last week,” adding, “However, it’s challenging to implement changes based on potential outcomes. Therefore, it’s tough to make significant portfolio adjustments without clarity on the final outcomes of the Russia-Ukraine conflict, tariffs, or government spending.” # Optimism Amid Short-Term Stock Slump There is still some optimism that if the Trump administration’s tariff war is not economically motivated, the recent stock sell-off might be short-lived. Baird’s Investment Strategist Ross Mayfield stated, “It’s clear that the U.S. government is pursuing trade goals that are not entirely economic in nature, which may entail enduring some pain. At this juncture, we don’t see an imminent recession, but there may be concerns about an economic slowdown or deceleration.” Mayfield further added, “Non-recessionary sell-offs tend to be shorter and milder compared to recessionary ones.” # CPI Focus by Investors Investors are keenly awaiting the release of the February Consumer Price Index (CPI) on the 12th. According to a Wall Street Journal survey, economists expect the February CPI to have risen by 0.3% month-over-month and 2.9% year-over-year. Excluding the volatile food and energy sectors, the core CPI is projected to be up 0.3% month-over-month and 3.2% year-over-year. Market participants might breathe a sigh of relief if U.S. inflation shows progress toward the Federal Reserve’s 2% target. This could imply that even if a recession is triggered by the tariff wars, the Fed would have room to respond with interest rate cuts. # Divergent Views on CPI Improvement However, there are pessimistic views that the market's anxiety might not ease even if the CPI shows improvement. Bank of America Global Research Economist Stephen Juneau pointed out in an investor note, “President Trump’s tariffs on China could elevate U.S. inflation, given China’s significant share in imports of household furniture, clothing, and electronics.” In individual stocks, American Airlines fell 8.32% after forecasting larger-than-expected first-quarter losses. Oracle dropped 3.10% despite reporting better-than-expected quarterly revenue. Tesla, which plummeted 15% the previous day—the worst single-day drop since 2020—rose 3.79% as bargain hunters stepped in. Citi recently downgraded its investment rating on U.S. stocks to 'neutral.’ The CBOE Volatility Index (VIX), known as the ‘fear gauge’ of Wall Street, decreased 2.40% to close at 27.19. mj72284@newspim.com