US Stocks Mixed as Auto Tariffs Hurt Automakers, Economic Data Offers Support
Market Performance and Tariff Impact
US stocks had a mixed day on Thursday. Auto tariffs announced by President Donald Trump dragged down automakers, but positive economic data helped steady the market.
- The S&P 500 showed minimal movement in the morning.
- The Dow Jones Industrial Average dropped by 33 points (0.1%).
- The Nasdaq Composite also dipped by 0.1%.
Auto Industry Downturn
General Motors suffered the most, losing 5.9% after Trump’s 25% tariff announcement on imported vehicles. Ford Motor fell 2.1%, and even US automakers felt the sting due to their North American supply chains. Trump wants auto production to happen within the US to reduce import dependency.
Global Automakers and Electric Vehicles
Non-US automakers also took a hit. Honda Motor fell 2.5% in Tokyo, Toyota Motor dropped 2%, and Hyundai Motor in Seoul lost 4.3%. Electric vehicle makers like Tesla and Rivian fared better, as they have more US-based production and are less affected by the new tariffs.
Uncertainty and Upcoming Tariffs
Uncertainty surrounds the impact of Trump’s “Liberation Day” tariffs, set for April 2. Despite tariff concerns, recent economic reports have been positive. A new report showed fewer workers filed for unemployment benefits than expected, signaling a robust job market. Additionally, US economic growth in Q4 2024 was stronger than initially thought.
Positive Economic Reports
These positive economic reports kept Treasury yields steady, with the 10-year Treasury bond yield inching up to 4.36% from 4.35%. Petco Health & Wellness saw a significant gain of 33.4%, after reporting better-than-expected results for its latest quarter.
Global Market Responses
European stock indexes declined following the automaker share drops. Japan’s Nikkei 225 fell 0.6%, as Prime Minister Shigeru Ishiba called for Japan tariff exemptions. Meanwhile, Chinese stocks rose slightly, with Shanghai up 0.1% and Hong Kong gaining 0.4%. Chinese automakers expanding internationally may feel an indirect impact from the tariffs.
