Equity Markets Decline as Investors React to Trump’s Auto Tariffs

Equity Markets Decline as Investors React to Trump’s Auto Tariffs

U.S. stock markets trended lower on Thursday as investors assessed the impact of newly imposed auto tariffs. President Donald Trump’s administration announced a 25% tariff on imported vehicles late Wednesday, adding pressure to the markets.

The Dow Jones Industrial Average dipped 0.2% to 42,387.6, while the Nasdaq Composite slipped 0.1% to 17,875.4. The S&P 500 edged down 0.1% to 5,709.5, with consumer staples and consumer discretionary sectors leading gains, while energy stocks posted the steepest declines.

Key Market Movers

• Dollar Tree (DLTR) soared over 10%, leading the S&P 500, after announcing the sale of its Family Dollar business to investment firms Brigade Capital Management and Macellum Capital Management for approximately $1.01 billion.

• Abbott Laboratories (ABT) gained 4% after securing CE Mark certification in Europe for its Volt pulsed field ablation system, designed to treat atrial fibrillation and other heart rhythm disorders.

• General Motors (GM) plunged 6.8%, making it the worst-performing stock on the S&P 500. Analysts at UBS Securities warned that GM is more vulnerable to tariff impacts than Ford, given its higher production levels in Mexico and Canada.

• Super Micro Computer (SMCI) dropped 6.3%, extending its weekly losses.

• United Airlines (UAL) slid 5.6% after its technicians’ union rejected a proposed contract.

Commodities & Treasury Yields

• The 10-year U.S. Treasury yield edged up 1.5 basis points to 4.4%, while the two-year yield fell 2.7 basis pointsto 4%.

• West Texas Intermediate (WTI) crude oil for May delivery rose 0.3% to $69.86 per barrel.

• Gold surged 1.19% to $3,055.33 per ounce, after touching a record high of $3,059.30. Goldman Sachs raised its gold price forecast to $3,300, citing stronger-than-expected ETF inflows and central bank demand.

As markets digest the auto tariffs, investor sentiment remains cautious, with continued volatility expected in the days ahead.