02/03 U.S. stocks shift lower after changes on news of tariffs after PCE data digests

After the announcement of PCE indicators, the U.S. stock market temporarily strengthened the dollar, but it started to rise mainly on technology stocks after Goolsbee’s remarks weakened. Since then, the market has expanded its gains with reports that the tariffs will be postponed from February 1 to March, but when a White House spokesman announced that tariffs on Canada, Mexico and China will remain in place on February 1, all major indexes, including Nasdaq, which had risen more than 1%, have shifted. In general, the market has changed with its performance and is sensitive to tariff issues (Dow -0.75%, Nasdaq -0.28%, S&P 500 -0.50%, Russell 2000 -0.86%, and Philadelphia Semiconductor Index -0.29%)

*Variants: PCE Indicators, Tariff Issues

U.S. personal income expanded to 0.4% from a 0.3% month-on-month increase last month. Consumer spending expanded from 0.6% to a 0.7% increase. Durable goods slowed significantly from 2.7% to 0.6%, but non-durable goods rose from 0.3% to 1.0% and the services sector rose from 0.4% to 0.6% to drive consumer spending. Meanwhile, the PCE price index rose from 0.12% month-on-month to 0.26% and from 2.45% to 2.55% year-on-year. While the core PCE price index rose from 0.11% to 0.16%, the core PCE price index slowed slightly from 2.82% to 0.79% year-on-year. Specifically, it was affected by a sharp rise in the energy and services sector from 0.2% to 2.7%

While the index results are generally in line with expectations, Fed Director Michelle Bowman said inflation concerns continue to be seen. The recent rate freeze is giving the Fed a clear understanding of Trump’s policies and their impact. The dollar strengthened in the comments. However, Chicago Fed Governor Goolsbee noted that the PCE data released today was more positive than expected. In particular, he argued that he thinks interest rates will be significantly lower in 12 to 18 months because it makes him feel comfortable about inflation moving towards 2%. The stock market rose due to Goolsbee’s remarks, and the dollar weakened

Meanwhile, there are reports that the tariff will be postponed to March 1st (Reuters) “according to an administration official.” The dollar weakened further after the news spread, and the stock market, which had been for sale, expanded further. However, a White House spokesperson announced that tariffs of 25% on Canada and Mexico and 10% on China on February 1 without exception. As a result, the dollar turned stronger and interest rates on government bonds expanded. The stock market fell due to the opening of the market. In particular, large technology stocks, which led the gains today, shrank, and the decline in some semiconductor industries and other sectors affected by tariffs, including automobiles, widened

Just before the market closed, Trump also announced that he would continue his tariff policy to address the trade deficit and said there was no room for negotiations. In addition, he announced that further increases are possible. After the market closed, Trump mentioned that tariffs may disrupt financial markets, but he is not concerned about them. Universal tariff concerns have escalated, with the announcement that they will also impose tariffs on the EU. The dollar strengthens, and interest rates return higher due to economic instability along with the end-of-month rebelling.

*Featured Stocks: Nvidia Toggles Higher To Tariffs

Nvidia (-3.67%) rose after news of a meeting with Trump on DeepSeek and export regulatory risks, but expanded its range after shifting downward on news of the February 1st tariff. Broadcom (+2.60%) continued its upward trend following the previous day due to news of the use of meta-platforms. Micron (-1.36%) started to decline due to Samsung Electronics’ inflow into the HBM market, but turned upward on news of expanding AI memory investment. However, it turned downward on the issue of tariffs. Intel (-2.90%) fell, reflecting sluggish sales despite better-than-expected earnings reports the previous day. AMD (-2.45%) also fell, while Ramsay Search (+0.40%) and KLA (-0.56%), which reported strong earnings, turned downward or returned upward on tariff issues. AMAT (-0.75%), TSMC (+0.56%), and ASML (+0.31%) also fell or returned upward on the news of the tariff. The Philadelphia Semiconductor Index fell 0.29%.

Tesla (+1.08%) continued to rise as buying flowed in citing expectations for robo-taxi and FSD despite its sluggish earnings report. However, some of the gains were returned after the tariff issue. Rivian (+0.40%) and Lucid (+1.47%) also rose. However, Chinese electric vehicles such as Nio (-2.70%), Xpeng (-2.25%) and Li Auto (-2.86%) rose on news of the tariff postponement but fell on the announcement of tariffs on China. Automotive sectors such as GM (-0.08%), Ford (-0.79%, Stellantis (-2.88%), Honda (-1.15%) and Toyota (-1.07%) also returned gains or shifted downward on the announcement that the White House spokesman’s tariff enforcement would continue.

Apple (-0.67 percent) rose due to shareholder return policy such as treasury stock purchase and service sales growth, but turned downward to reflect slowing iPhone sales and tariff imposition issues. MS (+0.02 percent) rose after falling sharply the previous day. Meanwhile, Amazon (+1.30 percent) rose on the back of positive outlook ahead of earnings announcement on Thursday (Thursday). However, it returned some of its gains on the news of Chinese tariffs. It is estimated that sales concerns have been highlighted as most of its products are from China. Alphabet (+1.47 percent) is expected to see a positive outlook ahead of its earnings announcement on Tuesday (Tuesday), especially a significant increase in value of DeepMide AI such as TPU chips. Meta (+0.32 percent) is also strong

AST SpaceMobile (+11.15%) is up sharply on news that it has signed strategic partnerships with AT&T and Verizon to be granted special temporary powers by the FCC. Redwire (+5.05%) is up on news that it has partnered with Virgin Calacti (+0.42%) to manufacture research storage boxes to be mounted on new Delta-class spacecraft. Rocket Lab (+