Stocks slumped on Wednesday ahead of President Trump’s expected announcement of tariffs on auto imports, as investors braced for levies that could disrupt carmakers’ supply chains and raise costs for consumers.
The S&P 500 fell roughly 1.1 percent for the day, and the tech-heavy Nasdaq Composite was 2 percent lower. The downturn reflected ongoing volatility in the stock market, which has been fueled by Mr. Trump’s whiplash on trade policies and concern among investors that sweeping tariffs could reignite inflation and slow down the U.S. economy.
Shares of most automakers dropped after the White House press secretary said Mr. Trump would announce new auto tariffs Wednesday afternoon. General Motors was down more than 3 percent for the day and Toyota fell nearly 2 percent, while Ford’s stock ended slightly higher, erasing its modest losses from earlier in the day. Shares of Tesla, which bounced on Monday after plunging earlier this month, were more than 5 percent lower for the day.
Details of the tariffs remained unclear on Wednesday afternoon, including whether they would apply broadly to all imports of cars and car parts, or be more narrowly tailored.
The stock market has dropped over the past month, a wave of selling that at one point left the S&P 500 more than 10 percent below its Feb. 19 peak. Despite some recent daily gains, Wall Street sentiment continues to be dampened by concerns that Mr. Trump’s tariffs and a trade war could push prices sharply higher, discourage consumers and damage the economy.
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