On Wednesday, U.S. stocks took a nosedive as the White House prepared to implement new tariffs. The S&P 500 dropped 1.1% to 5,712.20, while the Dow decreased by 0.3% to 42,454.79. The Nasdaq fell by 2%, closing at 17,899.02.
Initially opening with mixed performance, the market turned downwards midday following reports that President Donald Trump was considering tariffs on automobiles to be announced imminently. Companies like Stellantis N.V. and General Motors ended the day with lower stock prices.
Market movements have closely followed the White House’s stance on tariffs. Earlier in the week, stocks had surged after Trump hinted at limited levies due to take effect on April 2. However, the president later expanded his tariff list, affecting various industries, leading to a more cautious market on Tuesday.
In economic updates, the Commerce Department reported a surprising uptick in orders for durable goods like refrigerators in February. Durable goods orders rose by 0.9% for the month, surpassing analysts’ expectations of a decline.
Federal Reserve officials also weighed in on inflation concerns. Recent inflation readings prompted Austan Goolsbee, president of the Chicago Fed, to express worries. St. Louis Fed president Alberto Musalem suggested that new tariffs could have a lasting impact on inflation, contradicting Fed Chair Jerome Powell’s stance on the issue.
Meanwhile, the 10-year Treasury note saw a slight increase in yields, closing near 4.34%. Bonds yields rise as prices fall, with inflation levels affecting their value.
Gold prices remained high, hovering above $3,000 an ounce, as the metal is often viewed as a safe haven during inflation and geopolitical uncertainties.
In corporate news, Tesla shares declined by nearly 6% after Canada announced the suspension of rebate payments for the electric carmaker. Dollar Tree shares rebounded by 3.4% after reporting a larger-than-expected loss in the fourth quarter. GameStop Corp. saw a 12% increase in shares following an earnings beat and plans to invest in Bitcoin. Nvidia closed more than 5% lower.
