Stock market today: S&P 500, Dow, Nasdaq slide as investors weigh Trump's auto tariffs

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Updated Thu, Mar 27, 2025, 6:35 AM 2 min read

Adding much substance to fears, Trump said connected Thursday that tariffs "far larger than presently planned" volition beryllium imposed connected Canada and the EU if they enactment unneurotic to "do economical harm" to the US. Both cardinal US trading partners person responded sharply to the caller duties.

Automaker stocks successful Japan and Europe slumped arsenic Wall Street assessed the imaginable deed from the caller tariffs. Among US car giants, General Motors (GM) fell implicit 7%, portion Stellantis (STLA) slipped astir 2% and Ford (F) was small changed.

Investors stay disquieted that the US system could descent into recession if Trump's caller levies exacerbate sticky ostentation and slowing economical growth. The 3rd estimation of 4th fourth Gross Domestic Product (GDP) released Thursday greeting showed the US system grew astatine annualized complaint of 2.4% successful the last 4th of 2024, up from a anterior speechmaking of 2.3%. But the 4th fourth feels similar a distant representation amid the archetypal months of Trump's actions.

The latest economical information lays the crushed for Friday's merchandise of February's Personal Consumption Expenditures Index, the Federal Reserve's preferred ostentation gauge.

Fed Chair Jerome Powell precocious reassured markets that rising prices from Trump's tariffs are expected to beryllium "transitory." But that stance has raised questions, including from St. Louis Fed president Alberto Musalem.

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Stocks gaffe arsenic investors digest latest Trump tariffs

Stocks slipped connected Thursday aft President Trump announced tariffs connected car imports, raising concerns of a full-blown commercialized warfare and economical slowdown.

The S&P 500 (^GSPC) dropped 0.3% portion the tech-heavy Nasdaq Composite (^IXIC) besides slipped 0.3%. The Dow Jones Industrial Average (^DJI) fell 0.3% aft each 3 large averages declined successful the anterior session.

On Wednesday Trump signed disconnected connected 25% tariffs connected foreign-made autos, starting connected April 2, the aforesaid time that reciprocal levies are acceptable to instrumentality effect.

Wall Street anticipates the latest tariff announcement volition interaction the broader conveyance industry.

"We deliberation the projected tariffs arsenic announced would present a large deed to the car industry, stoking higher costs, higher prices, and a crisp diminution successful US sales," said Solita Marcelli, main concern serviceman Americas astatine UBS Global Wealth Management.
Auto stocks slump connected the heels of tariff announcement

Trump announced caller 25% car tariffs connected Wednesday evening, and markets person been speedy to reprice autos connected the news.

"In our presumption these archetypal tariffs (if they clasp successful their existent form) would beryllium a hurricane-like headwind to overseas (and galore US) automakers and yet propulsion the mean terms of cars up $5k to $10k depending connected the make/model/price point," Wedbush expert Dan Ives wrote successful a note. (You tin work much astir Wall Street's absorption here.)

Here's wherever car stocks are trading premarket:
Unemployment claims steady, 4th fourth GDP revised higher

A slew of economical information deed the portion astatine 8:30 a.m. connected Thursday.

In the latest motion that layoffs stay low, information from the Department of Labor released Thursday greeting showed 224,000 archetypal jobless claims were filed successful the week ending March 22, down from 225,000 the week anterior and beneath the 221,000 economists had expected.

Meanwhile, 1.86 cardinal continuing claims were filed, down from the 1.88 cardinal seen the week prior. Economists mostly judge the continued debased fig of play jobless claims combined with comparatively dependable continuing claims reflects a "low hire, debased fire" benignant of labour market.

In a abstracted merchandise from the Bureau of Economic Analysis, the 3rd estimation of 4th fourth Gross Domestic Product (GDP) showed the US system grew astatine annualized complaint of 2.4% successful the last 4th of 2024, up from a anterior speechmaking of 2.3%. Meanwhile, revisions besides showed halfway PCE, a intimately tracked ostentation gauge by the Federal Reserve, accrued 2.6% successful the 4th quarter, little than the archetypal speechmaking of 2.7%.
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GameStop's (GME) shares fell astir 7% successful premarket aft the institution said it is looking to rise $1.3 cardinal to bargain bitcoin (BTC-USD).

The games retailer plans to rise the funds via convertible elder notes.

Yahoo Finance's Josh Schafer reports:

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Elon Musk claims Tesla volition not beryllium 'unscathed' by upcoming car tariffs

Tesla (TSLA) CEO Elon Musk has commented connected X that Tesla volition look "significant" interaction from President Trump's car tariffs.

The connection was made successful effect to an infographic detailing the magnitude assorted automakers (including Ford (F), Toyota (TM), and GM (GM)) volition beryllium affected by Trump's tariffs connected "foreign-made vehicles" — with Tesla listed arsenic being 100% US-made.