Wall Street Woes: Trump’s Tariff Tensions Rattle Markets

The S&P 500 closed lower on Thursday following President Trump's latest tariff announcements affecting auto imports. General Motors and Ford shares fell, causing market uncertainty. Investors are cautious due to trade policy volatility. U.S. jobless claims and GDP growth data provided mixed economic signals.

The S&P 500 witnessed a downward trend on Thursday as President Donald Trump's trade tariff announcement sparked concern among investors, affecting stocks of major automakers General Motors and Ford. The newly unveiled 25% tariff on imported cars and light trucks added to market volatility, with GM plummeting over 7% and Ford sliding nearly 4%.

Despite the unsettling trade news, Tesla shares inched upwards by 0.4% as investors speculated the electric vehicle giant might be less impacted due to its largely domestic production. Meanwhile, Apple shares gained 1.05%, contributing to mitigating the losses in the S&P 500.

Investor caution pervades Wall Street amid Trump's unpredictable policy shifts, which have raised concerns over supply chain disruptions and inflation risks. Economic resilience indicators showed mixed results, with jobless claims slightly decreasing and GDP growth revised upward to 2.4%. Looking ahead, investors will be monitoring the Federal Reserve's preferred inflation metric, the February personal consumption expenditures price index.

(With inputs from agencies.)