Stocks’ losses eased after data showed the labor market holding up and fourth-quarter economic growth was revised higher. The good news helped temper the impact of Trump’s announcement of 25% tariffs on cars, trucks and auto parts — which sent General Motors (GM-6.94%) and some peers down.
The S&P 500, the Nasdaq Composite and Dow Jones Industrial Average fluctuated after fourth-quarter GDP growth was revised up 2.4% annually from 2.3%, reflecting higher investment and a downward revision to import growth. New filings for jobless benefits remained steady in the week to March 22, as did continuing claims for the priror week.
“Hard to see recession in these data, but the real test will be the initial read on Q1 2025 GDP, when the trade shocks feed into the numbers — that may not look so rosy,” Jamie Cox, managing partner for Harris Financial Group, said in an email. “The labor market is far stronger and resilient than folks appreciate.”
Automakers weren’t a big beneficiary of the batter data, as they face higher costs under Trump’s tariffs that they’ll either have to absorb or pass on to customers. JPMorgan (JPM-0.71%) downgraded its price targets for GM, Ford (F-3.25%) and Ferrari (RACE+2.70%).
GM stock plunged 6.5%, Ford declined 2%, and Stellantis (STLA-0.88%) fell 1.5%. The U.S.-traded shares of some foreign automakers slid, with Toyota (TM-2.77%) and Honda (HMC-2.69%) both falling more than 2%. Ferrari reversed an earlier decline after saying it’ll raise American prices for its cars by up to 10% after the tariffs go into effect April 2.
Tesla (TSLA+2.13%), one of the automakers least affected by the tariffs, rebounded from initial lows to trade more than 3% higher. Elon Musk said the electric vehicle makers, which relies on some imported parts, will take a hit from the tariffs.
Nvidia (NVDA-1.18%) stock slid about 1.2% after dropping 5.7% yesterday. Beijing has asked firms in China to use energy-efficient chips in data centers, the Financial Times reported on March 25. GameStop (GME-23.01%) plunged 25%, more than surrendering its gain yesterday after it announced plans to raise $1.3 billion by selling convertible senior notes due 2030 to finance Bitcoin investments.
Jefferies (JEF-9.82%) stock plunged more than 9% after the investment bank’s quarterly earnings missed expectations, with revenue 14.5% below the StreetAccount consensus forecast and earnings per share 39% lower.
Concentrix (CNXC+42.36%) stock jumped 37% after the outsourcing company’s quarterly per-share profit of $2.79 exceeded expectations by about 8.1%, and CEO Chris Caldwell used the earnings call to express confidence in the firms AI strategy.
—With reporting by William Gavin
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