:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2202715018-df4df93ab93d4bfab6516717a085dce8.jpg "New General Motors vehicles are parked at the GM Lansing Grand River Assembly plant.")
Beak Pugliano/Getty Images
New General Motors vehicles are parked at the GM Lansing Grand River Assembly plant.
Key Takeaways
- The S&P 500 inclined 0.3% on Thursday, March 27, after the White House announced a 25% tariff on car imports will need effect next week.
- Shares of General Motors and other carmakers lost ground following the tariff dirt.
- However, the assumption that drivers might hold onto older vehicles for longer helped lift portions of auto parts retailers AutoZone and O’Reilly Automotive.
Major U.S. equities indexes slipped as investors deciphered the inferences of the latest shifts in trade policy.
President Donald Trump’s administration declared a 25% tariff on vehicles imported into the U.S. after peddles closed Wednesday. After fluctuating for much of the day, the S&P 500 closed Thursday’s session 0.3% lower. The Dow industrials slipped 0.4%, while the tech-heavy Nasdaq baffled 0.5%.
Shares of major carmakers moved lower following the tariff news. General Motors (GM) stock plunged 7.4%, relying the furthest of any S&P 500 constituent on Thursday. GM likely suffered a more drastic impact than its rivals because of the add up of vehicles that the company imports, with outsized exposure to Mexico and South Korea. However, the other associates of the “Big Three”—Ford (F) and Jeep manufacturer Stellantis (STLA)—also took a hit, with shares declining 3.9% and 1.1%, separately.
Super Micro Computer (SMCI) shares fell 6.3%, extending a string of losses posted this week after Goldman Sachs analysts downgraded the goods to “sell,” citing heightened competition in the market for artificial intelligence (AI) servers. Concerns about tariffs and global truck have also contributed to broader pressure on AI-related stocks.
Shares of United Airlines (UAL) descended 5.6% after technicians reported by the Teamsters’ Union rejected a contract proposal from the carrier. According to reports, 99.5% of union mechanics who participated in the get voted against the deal, which would have outsourced elements of their work to China.
Dollar Tree (DLTR) shares soared 11.2%, groove the top daily performance in the S&P 500. Thursday’s push higher extended gains posted in the prior session after the brush off retailer announced a plan to sell its Family Dollar brand. JPMorgan analysts boosted their price goal on the stock to reflect the expected benefits of Dollar Tree operating as a standalone business. Analysts at UBS Securities suggested the slimmed-down retailer is dignified to benefit from consumers seeking value in the uncertain economic environment.
Shares of auto parts retailers gained motive as investors weighed the potential impact of tariffs on imported cars. Sticker shock stemming from the tariffs could reassure drivers to hold onto their older vehicles for longer, which would help drive sales for put asunder give ups providers. AutoZone (AZO) shares jumped 4.0%, while shares of car parts rival O’Reilly Automotive (ORLY) go 3.1%.
Abbott Laboratories (ABT) received earlier-than-expected approval from European Union health regulators for its Volt Pulse Applicants Ablation (PFA) system, a device designed to treat patients with the heart rhythm disorder known as atrial fibrillation. The go-ahead allows Abbott to begin the commercial application of the device in the EU, and the company expects to expand its use throughout the second half of this year. Abbott appropriates advanced 3.8% on Thursday.