US close: Stocks slide on automotive tariff concerns
By Josh White
Date: Thursday 27 Mar 2025
(Sharecast News) - Wall Street ended lower on Wednesday, weighed down by renewed trade concerns after reports suggested the US administration may impose tariffs on the automotive sector.
At the close, the Dow Jones Industrial Average was down 0.31% at 42,454.79, while the broader S&P 500 dropped 1.12% to 5,712.20.
The tech-heavy Nasdaq Composite led losses with a 2.04% decline, settling at 17,899.02.
"The more positive tone for US markets was not likely to last, and tariff reports and chip worries have driven Wall Street firmly into the red," said IG chief market analyst Chris Beauchamp.
"Measures in China designed to improve energy efficiency for data centres seem squarely aimed at Nvidia, and the news has dragged the stock, and tech stocks generally, sharply lower.
"It has lost its most-valuable company crown to Microsoft, continuing the pain for shareholders."
Beuchamp added that tariffs seemed back on the agenda again as the Trump administration looked to put the Atlantic leak debacle behind it.
"Levies on car imports seem primed to hit Europe hard, putting the DAX, Dow and S&P 500 firmly on the back foot.
"Investors remain very concerned that US stocks are due another leg down, one that is likely to drag the rest of the world with it."
Durable goods orders rise more than expected
In economic news, US durable goods orders rose more than expected in February, driven by a sharp rebound in automotive demand.
Data from the Commerce Department showed a 0.9% increase from the previous month, with orders for motor vehicles and parts climbing 4.0%, helping offset recent weakness in other segments of the manufacturing sector.
Meanwhile, inflation concerns remained in focus.
Chicago Federal Reserve President Austan Goolsbee warned in an interview with the Financial Times that any indication US bond markets were pricing in higher inflation would be a "major red flag," highlighting the central bank's continued vigilance.
Adding to the cautious tone, strategists at Barclays lowered their year-end 2025 forecast for the S&P 500 from 6,600 to 5,900.
The downgrade was attributed to growing uncertainty over potential tariff actions by the US administration, which could weigh on corporate margins and investor confidence.
Cintas in the green, vaccine makers come under pressure
In equities, Cintas Corporation shares rose 5.82% on Wednesday after the company reported stronger-than-expected third-quarter earnings and slightly raised its 2025 revenue and earnings per share guidance midpoints.
The results prompted Truist Securities to lift its price target on the stock to $230 from $215, reiterating a 'buy' rating.
Morgan Stanley also raised its target to $213 from $195 while maintaining an 'equalweight' stance, citing an improved EBITDA outlook.
Cintas, with a market cap of $82.8bn, posted 8.12% revenue growth over the past year and maintained robust gross margins of 49.62%, though analysts noted the stock trades at premium valuations relative to its growth.
In contrast, shares of vaccine makers came under pressure.
Moderna dropped 7%, Novavax lost 2.25%, and Pfizer declined 1.33%, following a report from the New York Times that the US government planned to end funding for Gavi, the Vaccine Alliance.
Gavi had played a key role in supplying vaccines to low-income countries, and the potential loss of US financial support raised concerns about reduced future demand for some manufacturers.
Reporting by Josh White for Sharecast.com.
Dow Jones - Risers
Procter & Gamble Co. (PG) $166.58 2.29%
McDonald's Corp. (MCD) $313.58 2.17%
Coca-Cola Co. (KO) $70.02 1.76%
Verizon Communications Inc. (VZ) $44.18 1.59%
Cisco Systems Inc. (CSCO) $61.80 1.33%
Chevron Corp. (CVX) $167.97 1.22%
Travelers Company Inc. (TRV) $262.26 1.08%
Unitedhealth Group Inc. (UNH) $518.20 0.93%
Dow Chemical Co. (DOW) $35.58 0.74%
Walmart Inc. (WMT) $85.21 0.53%
Dow Jones - Fallers
Intel Corp. (INTC) $23.42 -3.22%
Salesforce.Com Inc. (CRM) $280.99 -2.64%
Boeing Co. (BA) $178.55 -2.21%
Goldman Sachs Group Inc. (GS) $573.92 -2.05%
Microsoft Corp. (MSFT) $389.97 -1.31%
Nike Inc. (NKE) $65.74 -1.20%
American Express Co. (AXP) $276.00 -1.17%
Apple Inc. (AAPL) $221.53 -0.99%
Walt Disney Co. (DIS) $100.78 -0.82%
3M Co. (MMM) $152.68 -0.53%
S&P 500 - Risers
Cintas Corp. (CTAS) $204.71 5.82%
Paychex Inc. (PAYX) $150.19 4.20%
Sysco Corp. (SYY) $72.75 3.35%
Constellation Brands Inc. Class A (STZ) $184.11 3.22%
Dollar Tree Inc (DLTR) $69.21 3.08%
Molson Coors Beverage Co. Class B (TAP) $60.56 3.06%
H&R Block Inc. (HRB) $54.07 2.87%
J. M. Smucker Co. (SJM) $114.48 2.81%
Tyson Foods Inc. (TSN) $61.59 2.74%
Colgate-Palmolive Co. (CL) $92.03 2.72%
S&P 500 - Fallers
Arista Networks Inc. (ANET) $81.66 -6.07%
Nvidia Corp. (NVDA) $113.76 -5.74%
Quanta Services Inc. (PWR) $260.64 -5.65%
Illumina Inc. (ILMN) $82.83 -5.37%
CenturyLink Inc. (LUMN) $4.17 -5.23%
Eaton Corporation plc (ETN) $285.52 -4.83%
NRG Energy Inc. (NRG) $97.37 -4.79%
Broadcom Inc. (AVGO) $179.27 -4.78%
Nektar Therapeutics (NKTR) $0.80 -4.26%
Advanced Micro Devices Inc. (AMD) $110.19 -4.02%
Nasdaq 100 - Risers
Cintas Corp. (CTAS) $204.71 5.82%
Paychex Inc. (PAYX) $150.19 4.20%
Dollar Tree Inc (DLTR) $69.21 3.08%
Charter Communications Inc. (CHTR) $384.77 2.60%
Mondelez International Inc. (MDLZ) $66.33 2.54%
Biogen Inc (BIIB) $142.43 2.35%
Baidu Inc. (BIDU) $97.50 2.22%
Starbucks Corp. (SBUX) $97.97 2.18%
Kraft Heinz Co. (KHC) $29.69 2.03%
Liberty Global plc Series C (LBTYK) $12.17 1.93%
Nasdaq 100 - Fallers
Qvc Group Inc Series A (QVCGA) $0.21 -18.15%
Nvidia Corp. (NVDA) $113.76 -5.74%
Tesla Inc (TSLA) $272.06 -5.58%
Illumina Inc. (ILMN) $82.83 -5.37%
Mercadolibre Inc. (MELI) $2,074.97 -5.31%
Broadcom Inc. (AVGO) $179.27 -4.78%
Alphabet Inc. Class C (GOOG) $167.14 -3.27%
Alphabet Inc. Class A (GOOGL) $165.06 -3.22%
Intel Corp. (INTC) $23.42 -3.22%
Asml Holdings N.V. (ASML) $705.76 -2.89%
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