Stocks lost ground in early trading Thursday as investors assessed the latest developments on tariffs and digested fresh economic data.
The Dow Jones Industrial Average and S&P 500 were each down 0.1% about half an hour after the opening bell, while the tech-heavy Nasdaq Composite was off 0.2%. The major indexes closed sharply lower on Wednesday, snapping a three-day winning streak, amid reports that President Trump was set to announce tariffs on automobile imports.
After markets closed yesterday, the president announced a 25% tariff on imports of foreign-made cars and auto parts. The auto sector levies accelerate Trump’s ongoing efforts to raise tariffs on U.S. trading partners, which the administration says will bolster U.S. manufacturing and create jobs. However, uncertainty about the impact of tariffs, which economists say will reignite inflation and hurt economic growth, has weighed on market sentiment in recent months.
The final reading on fourth-quarter gross domestic product, a broad measure of economic growth, came in largely as expected this morning, as did weekly jobless claims numbers. Investors are keeping close tabs on all economic data points as they look for confirmation that the U.S. economy remains on sound footing. The main event on the economic calendar comes Friday, with the scheduled release of the Federal Reserve’s preferred measure of inflation.
Shares of auto sector stocks were under pressure in early trading. General Motors (GM) shares were down 7%, while Chrysler parent Stellantis (STLA) and Ford Motor (F) each dropped about 3%. Parts suppliers BorgWarner (BWA) and Aptiv (APTV) were down 5% and 4%, respectively.
EV maker Tesla (TSLA) was up 2.5% this morning after falling more than 5% yesterday. Other mega-cap technology stocks were mixed. Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOG), Meta Platforms (META) and Broadcom (AVGO) were down slightly, while Apple (AAPL) and Amazon (AMZN) inched higher.
Among other noteworthy technology stocks, server maker Super Micro Computer (SMCI) and marketing platform AppLovin (APP), two AI investor favorites, were down 2.5% and 1.5%, respectively. Chipmaker Advanced Micro Devices (AMD) dropped 3%.
The yield on the 10-year Treasury note, which tends to fall when concerns about the economy rise, was at 4.37% this morning, up from 4.34% at Wednesday’s close. The yield, which affects borrowing costs on all sorts of loans, notably mortgages, is at its highest level in a month.
Gold futures were up 0.7% at $3,045 an ounce, trading at record high levels, while West Texas Intermediate futures, the U.S. crude oil benchmark, slipped 0.3% to $69.45 per barrel. Bitcoin was little-changed at around $86,600.
