Major indexes fell Thursday for the second straight day, led by a steep decline for auto sector stocks, as investors assessed the latest developments on tariffs and digested fresh economic data.
The S&P 500 closed 0.3% lower, while the Dow Jones Industrial Average shed 0.4% and the tech-heavy Nasdaq Composite slipped 0.5%. Stocks had fallen sharply on Wednesday—snapping a three-day winning streak that had boosted optimism about a nascent recovery from a month-long slump—amid reports that President Trump was set to announce tariffs on automobile imports.
After markets closed yesterday, the president announced a 25% tariff on imports of foreign-made cars and auto parts. The auto sector levies accelerate Trump’s ongoing efforts to raise tariffs on U.S. trading partners, which the administration says will bolster U.S. manufacturing and create jobs. However, uncertainty about the impact of tariffs, which economists say will reignite inflation and hurt economic growth, has weighed on market sentiment in recent months.
The final reading on fourth-quarter gross domestic product, a broad measure of economic growth, came in largely as expected this morning, as did weekly jobless claims numbers. Investors are keeping close tabs on all economic data points as they look for confirmation that the U.S. economy remains on sound footing. The main event on the economic calendar comes Friday, with the scheduled release of the Federal Reserve’s preferred measure of inflation.
Auto sector stocks came under significant pressure on Thursday. General Motors (GM) shares tumbled more than 7% to lead S&P 500 decliners, while Ford Motor (F) slid 4% and Honda (HMC) and Toyota (TM) each fell nearly 3%. Parts suppliers BorgWarner (BWA) and Aptiv (APTV) both lost about 5%, while shares of Lear (LEA) plunged more than 8%.
EV maker Tesla (TSLA), which is seen as less affected by the import tariffs than other automakers, gained 0.4%, after falling more than 5% yesterday. Other mega-cap technology stocks were mixed. Chipmakers Nvidia (NVDA) and Broadcom (AVGO) dropped 2% and 4%, respectively, while Alphabet (GOOG) and Meta Platforms (META) also retreated. Apple (AAPL) rose 1%, while Microsoft (MSFT) and Amazon (AMZN) inched higher.
Among other noteworthy technology stocks, AppLovin (APP), a one-time AI investor favorite, plunged 20% to lead Nasdaq decliners, after Muddy Waters became the latest short-seller to issue a report on the advertising technology company. Shares of server maker Super Micro Computer (SMCI), which have been on a volatile run lately, fell 6%, while chipmaker Advanced Micro Devices (AMD) dropped more than 3% after a downgrade from Jefferies.
The yield on the 10-year Treasury note, which tends to fall when concerns about the economy rise, was at 4.36% in late trading, up from 4.34% at Wednesday’s close. The yield, which affects borrowing costs on all sorts of loans, notably mortgages, is at its highest level in a month.
Gold futures were up 1.5% at $3,070 an ounce, trading at record high levels, while West Texas Intermediate futures, the U.S. crude oil benchmark, rose 0.4% to $69.90 per barrel. Bitcoin was at $87,300, up from a morning low of $85,800.
These Were the Big S&P 500 Movers on Thursday
8 hr 47 min ago
Decliners
- Shares of major carmakers moved lower following the tariff news. General Motors (GM) stock plunged 7.4%, falling the furthest of any S&P 500 constituent on Thursday. GM likely suffered a more drastic impact than its rivals because of the number of vehicles that the company imports, with outsized exposure to Mexico and South Korea. However, the other members of the “Big Three”—Ford (F) and Jeep manufacturer Stellantis (STLA)—also took a hit, with shares declining 3.9% and 1.1%, respectively.
David Paul Morris / Bloomberg / Getty Images
- Super Micro Computer (SMCI) shares fell 6.3%, extending a string of losses posted this week after Goldman Sachs analysts downgraded the stock to “sell,” citing heightened competition in the market for artificial intelligence (AI) servers. Concerns about tariffs and global trade have also contributed to broader pressure on AI-related stocks.
- Shares of United Airlines (UAL) descended 5.6% after technicians represented by the Teamsters’ Union rejected a contract proposal from the carrier. According to reports, 99.5% of union mechanics who participated in the poll voted against the deal, which would have outsourced elements of their work to China.
Advancers
- Dollar Tree (DLTR) shares soared 11.2%, notching the top daily performance in the S&P 500. Thursday’s push higher extended gains posted in the prior session after the discount retailer announced a plan to sell its Family Dollar brand. JPMorgan analysts boosted their price target on the stock to reflect the expected benefits of Dollar Tree operating as a standalone business. Analysts at UBS Securities suggested the slimmed-down retailer is poised to benefit from consumers seeking value in the uncertain economic environment.
- Shares of auto parts retailers gained ground as investors weighed the potential impact of tariffs on imported cars. Sticker shock stemming from the tariffs could encourage drivers to hold onto their older vehicles for longer, which would help drive sales for parts providers. AutoZone (AZO) shares jumped 4.0%, while shares of car parts rival O’Reilly Automotive (ORLY) gained 3.1%.
- Abbott Laboratories (ABT) received earlier-than-expected approval from European Union health regulators for its Volt Pulse Field Ablation (PFA) system, a device designed to treat patients with the heart rhythm disorder known as atrial fibrillation. The approval allows Abbott to begin the commercial application of the device in the EU, and the company expects to expand its use throughout the second half of this year. Abbott shares advanced 3.8% on Thursday.
AppLovin Stock Plunges After Another Short-Seller Report
9 hr 30 min ago
AppLovin (APP) shares plummeted Thursday after short seller Carson Block’s Muddy Waters said it was taking a short position, alleging the adtech company engaged in “scammy” practices.
Shares lost about one-fifth of their value Thursday to close at $261.70, bringing them into negative territory for the year. Still, the stock has nearly quadrupled in value over the last 12 months on expectations it could benefit from growing demand for AI-powered advertising tools as the company reported strong revenue gains.
Muddy Waters accused AppLovin of misappropriating data and violating key partner platforms’ terms of service, among other things, and suggested backlash to its practices could hold back AppLovin’s growth plans and lead its services to be blocked by partners and boycotted by clients.
AppLovin did not immediately respond to a request for comment on the report.
The report from Muddy Waters comes just weeks after other short sellers including Fuzzy Panda and Culper Research issued their own reports against AppLovin, accusing the company of engaging in fraudulent and deceptive practices.
Petco Stock Jumps on Profit Forecast
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Petco (WOOF) shares soared Thursday morning as the pet retailer outlined a better-than-expected adjusted earnings forecast for fiscal 2025.
For the full year, Petco expects sales to decline by low single digits, while adjusted EBITDA is seen rising to between $375 million and $390 million from $336.5 million in 2024. Analysts expected $371.6 million, according to estimates compiled by Visible Alpha.
The retailer also announced a new collaboration Thursday, with its pet supplies products now available through the retail section of Uber (UBER) Eats.
The retailer is planning to boost profits by cutting costs and operating more efficiently. CEO Joel Anderson said in Wednesday’s earnings call that when he took over last summer, Petco’s “foundational practices were not those of a successful consumer business and needed overhauling,” according to a transcript from AlphaSense.
The average Petco customer “remains discerning,” Anderson said, noting that the chain is reviewing its product portfolio, and plans to dedicate more shelf space to faster-selling brands. The retailer is also looking to improve its margins by “executing more targeted promotions,” Anderson said.
The retailer reported $1.55 billion in sales for the quarter that ended Feb. 1, narrowly below estimates, while comparable store sales grew by 0.5%, below the 0.83% analyst consensus. Petco recorded a net loss of $0.05 per share, $0.02 wider than expectations.
Petco’s report follows that of online pet retail rival Chewy (CHWY), whose results topped estimates Wednesday.
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Petco shares gained 33% on Thursday. The stock has risen nearly 50% over the past 12 months, while Chewy shares have more than doubled over that period.
GameStop Plunges on Plan to Issue Debt to Buy Bitcoin
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GameStop (GME) shares tumbled Thursday, a day after the video game retailer said it was planning to issue $1.3 billion in convertible bonds for general corporate purposes, including buying Bitcoin (BTCUSD).
The company, which earlier this week updated its corporate investment policy to include buying the token, said it is offering the convertible bonds to investors in a private sale. The bonds mature in 2030.
GameStop, a former meme stock darling, is the latest company to use the sale of convertible bonds to load up on Bitcoin. Strategy (MSTR), formerly called MicroStrategy, has used the sale of such bonds to become one of the world’s largest holders of the token.
Convertible bonds are corporate bonds that can be changed by the holder into the common stock of the issuing company.
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GameStop shares were down 23% in late trading Thursday but have gained about 65% over the past 12 months.
Dollar Tree Soars as Analysts Cheer Family Dollar Sale
12 hr 31 min ago
Dollar Tree (DLTR) shares soared Thursday, leading S&P 500 gainers as analysts issued bullish comments on the retailer’s deal to sell the Family Dollar brand.
UBS Securities analysts on Thursday maintained their “buy” rating with a $95 price target, and said the Family Dollar sale “will make the investment case on the stock compelling, despite various uncertainties like the impact of tariffs.”
With the $1 billion Family Dollar brand sale to a pair of private equity firms, the analysts said they believe Dollar Tree has “finally removed its biggest hurdle to create shareholder value.” The analysts said they believe investor sentiment should improve as Dollar Tree’s earnings get a boost without Family Dollar.
The analysts cited management’s comments that customers from across a range of income levels are turning to Dollar Tree as a sign that the company is “well positioned to benefit” from consumers trading down and looking for value.
In another research note Thursday, JPMorgan analysts kept their “neutral” rating while trimming their price target to $78 from $88 to reflect the value of Dollar Tree operating as a standalone business rather than with Family Dollar.
UBS’s $95 price target is higher than the $78.29 consensus compiled by Visible Alpha, while JPM’s new price target is in line with the average.
Analysts from both brokerage firms also noted the potential headwinds of the Trump administration’s tariffs. Dollar Tree executives have said they have not factored all of the announced tariffs into their full-year outlook numbers. However, the UBS analysts said benefits like the Family Dollar sale and improving comparable-store sales trends “outweigh” the risk of tariffs.
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Dollar Tree shares were up 11% at $76.60 in recent trading, putting the stock back into positive territory for 2025.
Which Auto Sector Stocks Stand to be Hardest Hit by Tariffs?
13 hr 51 min ago
Shares of U.S. and international automakers tumbled on Thursday after President Trump declared a 25% tariff on imported vehicles and, eventually, auto parts.
Economists and analysts expect the tariffs to dramatically increase costs for both U.S. manufacturers, whose supply chains snake across North America, and consumers.
JPMorgan analysts had estimated Trump’s proposed tariffs on Canadian and Mexican vehicle imports would cost the industry about $41 billion a year if automakers absorbed all of the costs. After Wednesday’s announcement, which applies tariffs to all countries, they doubled their estimate to $82 billion. If manufacturers pass the entire cost of the tariffs along to consumers, JPMorgan estimates car prices will increase by nearly 12%.
The tariffs announced on Wednesday, the analysts said, were a slight reprieve for U.S. automakers like Ford (F) and General Motors (GM). If tariffs were confined to just Canada and Mexico, their reliance on factories in those countries would have put them at a disadvantage against international manufacturers. But with tariffs applied globally, domestic companies are in a better position to raise prices without losing market share, the analysts said.
That said, GM is still the most exposed of the car manufacturers that JPMorgan follows. It sources an estimated 40% of its vehicles from Canada and Mexico, and imports from South Korea. Ford, meanwhile, sources just 7% of its cars from America’s neighbors and has no exposure to South Korea. Analysts estimate GM’s “tariff bill” will eventually total $13 billion, while Ford’s could reach $4.5 billion.
Read the full article here to learn what the tariffs mean for EV makers and parts suppliers.
Jefferies Stock Sinks After Soft Results
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Shares of Jefferies Financial Group (JEF) plunged Thursday, a day after the financial services firm posted worse-than-expected results, which it said were caused by difficult capital market conditions.
The company posted first-quarter fiscal 2025 adjusted earnings per share (EPS) of $0.57 on revenue that slid 8% year-over-year to $1.59 billion. Analysts surveyed by Visible Alpha were looking for $0.94 and $1.88 billion, respectively.
Asset management revenue plunged 30% to $191.7 million. Revenue from investment banking dropped nearly 4% to $700.7 million, and capital market revenue similarly declined to $698.3 million.
In the management comments section of the earnings report, CEO Richard Handler and President Brian Friedman blamed the performance on global factors, arguing that “capital markets have become increasingly more challenging due to the uncertainties that have arisen around U.S. policy and geopolitical events.”
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Jefferies shares were down more than 9% in recent trading. The stock has lost about a third of its value since hitting a record high in January.
AMD Slides as Jefferies Downgrades Stock
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Advanced Micro Devices (AMD) shares lost ground Thursday as Jefferies analysts downgraded the stock, saying they expect the performance gap between AMD’s latest products and Nvidia’s (NVDA) to widen.
The analysts downgraded AMD’s stock to a “hold” and cut their price target to $120, down from a “buy” rating and $135 price target previously. That’s well below the $139 average target of analysts tracked by Visible Alpha, five of whom have issued “hold” ratings, compared to seven “buy” and one “sell” rating.
AMD shares were down more than 3% at $106.50 in recent trading Thursday, and have lost more than 40% of their value over the last 12 months.
Citing performance tests conducted with three open-source artificial intelligence (AI) models in recent weeks, Jefferies wrote that Nvidia’s H200 graphics processing unit (GPU) still has a “significant performance advantage” over AMD’s MI300x, and that they expect the gap could “expand further” with Nvidia’s Rubin and Blackwell lines.
Nvidia’s GPU “outperformed AMD by a wide margin” across most of the analysts’ tests. Despite AMD’s product having some advertised advantages like higher memory bandwidth, they “do not result in superior real-world performance,” the analysts wrote.
They also said “expectations of mounting competition” from Intel (INTC) contributed to the downgrade, as they believe Intel could have “fairly competitive chips” by next year under its new CEO.
Goldman Raises End-Year Gold Price Target to $3,300/oz
16 hr 11 min ago
Gold prices surged to another record high this morning as Goldman Sachs raised its price target on the precious metal.
The investment bank now expects gold to hit $3,300 per ounce by the end of 2025, up from its previous target of $3,100.
Gold futures were at $3,070 in recent trading, up 1.5% from Wednesday’s close. Prices have jumped in the past year as investors, anxious about escalating trade wars and U.S. economic growth, have flocked to traditional safe havens.
Goldman analysts Lina Thomas and Daan Struyven said their increased year-end target reflected higher-than-estimated inflows into gold by exchange-traded funds as well as “continued strong central bank gold demand.” They said they expect large Asian central bank buyers to “continue their rapid gold purchases for another 3-6 years.”
The analysts said investors could find “entry points” to acquire gold under two cases : A Russia-Ukraine peace deal that triggers speculative selling or a sharp drop in equities that leads to “margin-driven gold liquidation.” They noted, however, that rules by Beijing allowing Chinese insurers to acquire gold may limit declines.
Nvidia Price Levels to Watch as Selloff Accelerates
17 hr 15 min ago
Shares of Nvidia (NVDA) moved lower in early trading Thursday after plunging nearly 6% yesterday, extending a slump for the AI chipmaker.
Through Wednesday’s close, Nvidia shares have lost about a quarter of their value since hitting their record high in January, pressured by concerns over AI spending, moderating sales growth and uncertainty over the Trump administration’s trade policies.
Since setting their record high, Nvidia shares have trended lower within a descending channel. The price broke down below a pennant pattern in Wednesday’s trading session on the highest volume in more than a week, indicating a continuation of the stock’s current move lower.
It’s also worth pointing out that the 50-day moving average (MA) recently crossed below the 200-day MA to form an ominous death cross, a chart pattern that forecasts the start of a new downtrend. Moreover, the relative strength index (RSI) has moved back below the 50 threshold to signal weakening price momentum.
Investors should watch crucial support levels on Nvidia chart around $105 and $96, while also monitoring key resistance levels near $130 and $150.
Nvidia shares were recently down 0.7% at around $113.
Read the full technical analysis piece here.
Major Index Stock Futures Mixed
18 hr 31 min ago
Futures tied to the Dow Jones Industrial Average were up 0.2% in recent trading.
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S&P 500 futures were down fractionally.
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Nasdaq 100 futures slipped 0.1%.
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