Wall St lower on tariff worries, Nvidia and Tesla drop as world waits for Trump announcment
Wall Street stocks ended sharply lower on Wednesday, dragged down by losses in Nvidia and Tesla as investors awaited information about long-promised US tariffs on automotive imports.
US President Donald Trump is set to announce plans for car-industry tariffs at a press conference later on Wednesday, widening the global trade war he kicked off this year. Auto industry experts expect the move to drive up prices and stymie production. For weeks, Trump has promised to announce a swath of reciprocal tariffs on April 2.
Shares of Tesla and General Motors both lost ground, with investors uncertain about the scale of tariffs, retaliatory measures from trading partners and potential ripple effects on the global economy and businesses.
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By continuing you agree to our Terms and Privacy Policy.“Markets hate the tariff uncertainty, especially when it pertains to autos. Autos are ground zero for the negative economic impacts of tariffs,” said Jamie Cox, managing partner at Harris Financial Group.
Heavyweight chipmakers Nvidia and Broadcom both fell sharply.
According to preliminary data, the S&P 500 lost 65.10 points, or 1.13 per cent, to end at 5,711.55 points, while the Nasdaq Composite lost 372.84 points, or 2.04 per cent, to 17,899.02. The Dow Jones Industrial Average fell 134.07 points, or 0.31 per cent, to 42,444.02.
A survey revealed a decline in optimism among top business executives in the first quarter.
Businesses wary of tariff-related price hikes scrambled to build up inventories. Data showed an unexpected increase last month in orders for durable US-manufactured goods.
Barclays revised its S&P 500 target downward to 5,900 points from 6,600. The S&P 500 has lost three per cent so far in 2025, while the Nasdaq is down over seven per cent.
The main focus later this week will be the personal consumption expenditures price index - the Federal Reserve’s favoured inflation gauge - due on Friday.
Minneapolis Fed President Neel Kashkari said he was uncertain about the effect of Trump’s tariffs, with the possibility they could push up prices arguing for higher interest rates.
Dollar Tree rose after the discount-retail chain said it was nearing a sale of its Family Dollar business to a consortium of private equity investors for about $US1 billion ($A1.6 billion).
GameStop jumped following its board’s unanimous approval to incorporate bitcoin as a treasury reserve asset.
