The S&P 500 fell 0.4%, the Nasdaq lost 0.7% and the Dow Jones sank about 180 points on Thursday, as traders digested the latest tariff announcements and fresh economic data.
The Trump administration announced a 25% tariff on "all cars not made in the US," set to take effect on April 2, while Trump warned of imposing "far larger" tariffs on the EU and Canada if they coordinated efforts to counter US trade measures.
Concerns are growing that these tariffs could hurt the US economy and drive inflation higher. On the data front, GDP growth for Q4 was revised slightly higher to 2.4% from 2.3% and core PCE prices also rose slightly less in Q4 (2.6% vs 2.7%).
Also, initial claims came roughly in line with expectations and the levels of the previous weeks, but the goods deficit was higher than expected. Shares of General Motors plunged almost 9%, while Ford fell 2.6%. Tesla, on the other hand, gained nearly 0.8%, benefiting from its large manufacturing presence in California and Texas.
Source: Trading Economics
