Market Recap: Equities Decline Ahead of Auto Tariff Announcement – March 26th

Market Recap: Equities Decline Ahead of Auto Tariff Announcement – March 26th

U.S. stock markets closed lower on Wednesday as investors braced for the expected announcement of new auto tariffs, fueling concerns that increased import duties could drive inflation higher.

• Nasdaq Composite fell 2% to 17,899

• S&P 500 declined 1.1% to 5,712.2

• Dow Jones Industrial Average slipped 0.3% to 42,454.8

Market Movers & Key Developments:

• Technology stocks led losses, while consumer staples were the best-performing sector.

• President Donald Trump was set to announce auto tariffs at 4 PM on Wednesday, according to White House Press Secretary Karoline Leavitt.

• Copper import tariffs may also come sooner than expected, Bloomberg reported.

• U.S. Treasury yields rose, with the 10-year yield increasing 4.4 basis points to 4.35% and the 2-year yieldclimbing 3.5 basis points to 4.02%.

• WTI crude oil gained 1.2% to $69.82 per barrel following a larger-than-expected draw in U.S. crude stockpiles.

• Gold remained flat at $3,054.90 per troy ounce, while silver edged down 0.1% to $34.14 per ounce.

Top Gainers ?

• Cintas (CTAS): +5.8% – The uniform supplier raised its full-year earnings outlook after strong fiscal Q3 results.

• Paychex (PAYX): +4.2% – Reported better-than-expected earnings, driven by growth across its business segments.

• Dollar Tree (DLTR): +3.1% – Shares rose after announcing the $1 billion sale of its Family Dollar brand to private equity firms Brigade Capital Management and Macellum Capital Management.

Top Losers ?

• Super Micro Computer (SMCI): -8.9% – Shares plunged after Goldman Sachs downgraded the stock to “sell” due to increased competition in the AI server market.

• Moderna (MRNA): -7% – Declined following reports that the U.S. will discontinue funding for Gavi, the Vaccine Alliance.

• Arista Networks (ANET): -6.1% – The cloud networking stock fell as AI-related stocks faced pressure.

• Nvidia (NVDA): -5.7% – Led Dow losers amid concerns about additional AI chip sales restrictions in China.

• Tesla (TSLA): -5.6% – Dropped after a five-session winning streak, despite a recent 27% rebound from its prolonged downturn.

• Vistra (VST): -5.9% – The utility company, seen as a potential AI data center power provider, saw its stock decline.

Markets remain on edge as investors monitor policy changes and macroeconomic trends for potential impacts on inflation and corporate earnings.