The S&P 500 fell 0.4%, the Nasdaq lost 0.7%, and the Dow Jones sank about 180 points on Thursday, as traders digested the latest tariff announcements and fresh economic data.
US stocks decline amid tariff concerns
The Trump administration announced a 25% tariff on "all cars not made in the US," set to take effect on April 2, while Trump warned of imposing "far larger" tariffs on the EU and Canada if they coordinated efforts to counter US trade measures. Concerns are growing that these tariffs could hurt the US economy by disrupting supply chains, raising costs for consumers, and driving inflation higher.
On the data front, GDP growth for Q4 was revised slightly higher to 2.4% from 2.3%, signaling resilient economic activity despite trade uncertainties. Meanwhile, core PCE prices, the Fed’s preferred inflation gauge, rose slightly less than previously estimated (2.6% vs. 2.7%), offering some relief to inflationary pressures. Initial jobless claims remained roughly in line with expectations and the levels of previous weeks, indicating continued strength in the labor market, but a higher-than-expected goods trade deficit added to concerns about the overall economic outlook.
Auto stocks tumble
In corporate news, auto stocks tumbled following the tariff announcement. Shares of General Motors plunged nearly 9% as investors worried about the impact on its global supply chain, while Ford dropped 2.6%. European and Japanese automakers were also hit, with BMW and Toyota seeing sharp declines in overseas trading. Tesla, on the other hand, bucked the trend, rising nearly 0.8% as its large manufacturing presence in California and Texas positioned it more favorably against the new tariffs.
