US Stocks Fall as Tariffs Concerns Weigh
US stocks closed lower on Thursday as investors reacted to President Trump's announcement of new tariffs on foreign-made autos, sparking concerns about a potential trade war and its broader impact on the global economy.
The S&P 500 dropped 0.3%, the Dow Jones lost 155 points, and the Nasdaq 100 declined by over 0.5%. Trump's decision to impose a 25% tariff on imported cars, effective in April, heightened fears of escalating trade tensions, particularly with key trading partners like the EU and Canada.
Automaker stocks took a hit, with General Motors falling 7.3% and Ford losing 3.9%, while Tesla gained 0.4%, benefiting from its domestic production. Investors also absorbed fresh economic data, with Q4 GDP growth revised slightly higher to 2.4% from 2.3%, and core PCE inflation rising slightly less than expected.
Initial jobless claims were in line with expectations, but the goods trade deficit came in higher than anticipated, adding to market uncertainty.
Source: Trading Economics
