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US stocks trimmed losses to turn positive on Thursday after President Trump pushed ahead with hefty new tariffs on auto imports, stoking concerns about a potential full-on trade war and global economic harm.
The S&P 500 (^GSPC) rose 0.1%, while the Dow Jones Industrial Average (^DJI) rose above the flat line on the heels of a losing day for the major gauges. The tech-heavy Nasdaq Composite (^IXIC) pared losses to rise more than 0.1%.
Trump on Wednesday signed an executive order placing the 25% tariffs on foreign-made autos, to begin in April, the same week that reciprocal tariffs are set to take effect.
Adding more fuel to fears, Trump said on Thursday that tariffs “far larger than currently planned” will be imposed on Canada and the EU if they work together to “do economic harm” to the US. Both key US trading partners have responded sharply to the new duties.
Nasdaq GIDS – Free Realtime Quote USD
As of 11:22:36 AM EDT. Market Open.
^IXIC ^DJI ^GSPC
Automaker stocks in Japan and Europe slumped as Wall Street assessed the potential hit from the new tariffs. Among US car giants, General Motors (GM) fell over 7%, while Stellantis (STLA) slipped roughly 2% and Ford (F) fell 4%.
Investors remain worried that the US economy could slide into recession if Trump’s new levies exacerbate sticky inflation and slowing economic growth. The third estimate of fourth quarter gross domestic product (GDP) released Thursday morning showed the US economy grew at an annualized rate of 2.4% in the final quarter of 2024, up from a prior reading of 2.3%. But the fourth quarter feels like a distant memory amid the first months of Trump’s actions.
The latest economic data lays the ground for Friday’s release of February’s Personal Consumption Expenditures index, the Federal Reserve’s preferred inflation gauge.
Fed Chair Jerome Powell recently reassured markets that rising prices from Trump’s tariffs are expected to be “transitory.” But that stance has raised questions, including from St. Louis Fed president Alberto Musalem.
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Tesla rallies 6% while GM sinks 6% as investors assess exposure to auto tariffs
Tesla stock (TSLA) rose to a session high of 6% on Thursday as investors may be viewing the EV maker less exposed than other vehicle makers to the Trump administration’s newly announced auto tariffs.
With plants in California and Texas, Tesla shares rallied after President Trump’s signed off on 25% levies on foreign-made autos.
Even though Teslas are mostly made in the US, CEO Elon Musk indicated his company would not go ‘unscathed’.
Meanwhile, GM (GM) sank 6% while Stellantis (STLA) and Ford (F) slipped 1% on concerns of tariff impacts. As Pras Subramanian reported, GM, Ford, and Stellantis build vehicles in Canada, Mexico, and China, and they foresee higher production costs due to tariffs’ effect on the auto supply chain.
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Dow turns positive, stocks trim losses as market shrugs off auto tariffs
Stocks trimmed losses on Thursday morning after all three major averages opened in negative territory.
The S&P 500 (^GSPC) hovered near the flat line while the tech-heavy Nasdaq Composite (^IXIC) pared losses to slip 0.1%.
The Dow Jones Industrial Average (^DJI) briefly flipped into green territory after falling as much as 0.6%, or more than 200 points.
US automaker stocks were still broadly lower after President Trump signed off on 25% tariffs on foreign-made autos on Wednesday.
DJI – Delayed Quote USD
As of 11:22:42 AM EDT. Market Open.
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Stocks slip as investors digest latest Trump tariffs
Stocks slipped on Thursday after President Trump announced tariffs on auto imports, raising concerns of a full-blown trade war and economic slowdown.
The S&P 500 (^GSPC) dropped 0.3% while the tech-heavy Nasdaq Composite (^IXIC) also slipped 0.3%. The Dow Jones Industrial Average (^DJI) fell 0.3% after all three major averages declined in the prior session.
DJI – Delayed Quote USD
As of 11:22:42 AM EDT. Market Open.
On Wednesday Trump signed off on 25% tariffs on foreign-made autos, starting on April 2, the same day that reciprocal levies are set to take effect.
Wall Street anticipates the latest tariff announcement will impact the broader vehicle industry.
“We think the proposed tariffs as announced would deliver a big hit to the auto industry, stoking higher costs, higher prices, and a sharp decline in US sales,” said Solita Marcelli, chief investment officer Americas at UBS Global Wealth Management.
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Auto stocks slump on the heels of tariff announcement
Trump announced new 25% auto tariffs on Wednesday evening, and markets have been quick to reprice autos on the news.
“In our view these initial tariffs (if they hold in their current form) would be a hurricane-like headwind to foreign (and many US) automakers and ultimately push the average price of cars up $5k to $10k depending on the make/model/price point,” Wedbush analyst Dan Ives wrote in a note. (You can read more about Wall Street’s reaction here.)
Here’s where auto stocks are trading premarket:
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Unemployment claims steady, fourth quarter GDP revised higher
A slew of economic data hit the tape at 8:30 a.m. on Thursday.
In the latest sign that layoffs remain low, data from the Department of Labor released Thursday morning showed 224,000 initial jobless claims were filed in the week ending March 22, down from 225,000 the week prior and below the 221,000 economists had expected.
Meanwhile, 1.86 million continuing claims were filed, down from the 1.88 million seen the week prior. Economists largely believe the continued low number of weekly jobless claims combined with relatively steady continuing claims reflects a “low hire, low fire” type of labor market.
In a separate release from the Bureau of Economic Analysis, the third estimate of fourth quarter Gross Domestic Product (GDP) showed the US economy grew at annualized rate of 2.4% in the final quarter of 2024, up from a prior reading of 2.3%. Meanwhile, revisions also showed core PCE, a closely tracked inflation gauge by the Federal Reserve, increased 2.6% in the fourth quarter, lower than the initial reading of 2.7%.
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Good morning. Here’s what’s happening today.
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GameStop stock slips amid plan to raise $1.3 billion for bitcoin buying spree
GameStop’s (GME) shares fell almost 7% in premarket after the company said it is looking to raise $1.3 billion to buy bitcoin (BTC-USD).
The games retailer plans to raise the funds via convertible senior notes.
Yahoo Finance’s Josh Schafer reports:
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Elon Musk claims Tesla will not be ‘unscathed’ by upcoming auto tariffs
Tesla (TSLA) CEO Elon Musk has commented on X that Tesla will face “significant” impact from President Trump’s auto tariffs.
The statement was made in response to an infographic detailing the amount various automakers (including Ford (F), Toyota (TM), and GM (GM)) will be affected by Trump’s tariffs on “foreign-made vehicles” — with Tesla listed as being 100% US-made.
