FX.co ★ US Stocks Decline Amid Tariff Concerns

On Thursday, stock indices experienced declines as traders assessed recent tariff announcements and new economic figures. The S&P 500 dropped by 0.4%, the Nasdaq decreased by 0.7%, and the Dow Jones fell approximately 180 points. The Trump administration introduced a 25% tariff on "all cars not made in the US," effective April 2, while President Trump cautioned that significantly higher tariffs could be imposed on the EU and Canada should they align to counteract US trade policies. Concerns are mounting that these tariffs may adversely impact the US economy and escalate inflation rates. In terms of economic data, the GDP growth rate for Q4 was slightly revised upwards to 2.4% from the prior 2.3%, and core PCE prices increased marginally less than previously estimated in Q4 (2.6% compared to 2.7%). Additionally, initial jobless claims aligned closely with expectations and recent trends, though the goods trade deficit exceeded forecasts. In the automotive sector, General Motors shares plunged nearly 9%, and Ford saw a decline of 2.6%, while Tesla managed a gain of almost 0.8%, bolstered by its significant manufacturing operations in California and Texas.