Trade Turmoil: Tariffs Shake Wall Street as Auto Giants Tumble

The S&P 500 dropped as President Donald Trump's trade tariff announcements affected shares of GM, Ford, and auto parts manufacturers. Tesla rose due to its domestic production. Uncertainty looms on Wall Street concerning supply chain disruptions and inflation. The markets await insights from Federal Reserve policymakers.

The U.S. stock market took a hit on Thursday following President Donald Trump's announcement of a 25% tariff on imported vehicles, affecting major companies like General Motors and Ford. Car parts manufacturers Aptiv and BorgWarner also saw declines, whereas Tesla experienced an uptick due to its domestic manufacturing footprint.

Wall Street is on edge as Trump's unpredictable trade policies foster uncertainty among investors, particularly concerning the risk of supply chain disruptions and potential inflation that could hinder global economic growth. Jed Ellerbroek, a portfolio manager in St. Louis, described investor sentiment as cautious and wary due to the fluctuation of Trump's policies.

Concluding with a downturn, the S&P 500 lost 19.46 points, while the Nasdaq and Dow Jones also saw declines. However, there were positive signals in the job market, with a steady jobless rate and revised fourth-quarter GDP growth. All eyes now turn to Friday's release of the February personal consumption expenditures price index, the Fed's preferred inflation measure.

(With inputs from agencies.)