(Bloomberg) — Stocks fell after the US pushed ahead with tariffs on automakers, reinforcing concern about a widening trade war and offsetting data that showed faster-than-estimated growth in the world’s largest economy.
Most Read from Bloomberg
Just days before the end of a quarter that’s set to be the worst for the S&P 500 since 2023, the gauge slipped anew. Car giants from Toyota Motor Corp. to Mercedes-Benz Group AG and General Motors Co. got hit. AppLovin Corp. sank on a short report from Muddy Waters. Megacaps were mixed, with Apple Inc. up and Nvidia Corp. down. In late hours, Lululemon Athletica Inc. gave a gloomy outlook. The bond market flashed concerns about inflation as short-dated Treasuries outperformed longer ones.
President Donald Trump signed a proclamation to implement a 25% tariff on auto imports and pledged harsher punishment on the EU and Canada if they join forces against the US. The move overshadowed data showing the economy expanded at a quicker pace in the fourth quarter than previously estimated. A measure of inflation was revised lower.
To Bret Kenwell at eToro, the data won’t act as a major confidence boost for investors as their focus is firmly planted in the current economic landscape rather than the one from a few months ago.
↵
Subscribe to the Stock Movers Podcast on Apple, Spotify and other Podcast Platforms.
“Investors will want to see in-line or better inflation results and a strong employment number to gain some reassurance,” he said.
Inflation remains at a disquieting level for the Federal Reserve. And Friday’s personal consumption expenditures price index is forecast to show signs of stickiness.
The S&P 500 lost 0.3%. The Nasdaq 100 fell 0.6%. The Dow Jones Industrial Average slid 0.4%.
The yield on 10-year Treasuries rose one basis point to 4.36%. The dollar wavered.
Friday’s inflation data will provide a snapshot of price pressures and economic activity leading up to Trump’s planned April 2 announcement on reciprocal tariffs — which he has dubbed “Liberation Day in America.”
…..
