Newscasts - Wall St ends lower as investors digest Trump's auto tariffs

BorgWarner

27/03/2025 22:32

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Source: 'Reuters - Business videos'

Description: U.S. stocks ended lower on Thursday, as investors grappled with U.S. President Donald Trump's latest trade tariff announcement that hit shares of General Motors and Ford. Lisa Bernhard has more.

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Video Transcript:

US stocks ended lower on Thursday, with the Dow and S&P 500 both dropping about 0.3%, and the NASDAQ shedding more than 0.5%. President Donald Trump's mercurial tariff policies have created uncertainty on Wall Street and continue to fuel fears of a global slowdown. Ben McMillan is Chief Investment Officer and co-founder of IDX Advisors.

Generally, we're seeing a lot of investors repricing growth, repricing the AI trade, starting to favor more defensive stocks. And again, all of this is directly tied to concerns about what the tariffs are going to look like. I joked to an investor earlier this morning that markets don't like tariffs, markets don't like uncertainty, and markets hate tariff uncertainty.

Trump's plan to implement a 25% tariff on imported cars rocked shares of automakers. General Motors tumbled more than 7% and Ford slid almost 4%. Shares of car parts manufacturers Aptiv and BorgWarner also suffered substantial losses. But shares of Tesla were spared, edging up modestly, as investors bet the electric vehicle maker will be hurt less by tariffs because of its largely domestic production. Other movers included Lululemon Athletica, which closed higher but plummeted more than 10% in extended trading after the apparel company forecast annual revenue and profit below estimates, as a refresh of its product line has failed to attract more customers. And shares of Dollar Tree jumped 11% as several analysts raised their price targets a day after the discount retailer said it sold its struggling Family Dollar business for about $1 billion. Investors on Friday will focus on the February Personal Consumption Expenditures Price Index, the Federal Reserve's favored inflation gauge.