US close: Stocks slip as investors weigh Trump's auto tariffs
By Josh White
Date: Friday 28 Mar 2025
(Sharecast News) - Wall Street stocks ended lower on Thursday as investor sentiment was weighed down by persistent concerns over president Donald Trump's tariff proposals and a slightly stronger-than-expected US economic growth report for the fourth quarter.
At the close, the Dow Jones Industrial Average was down 0.37% at 42,299.70, while the S&P 500 declined 0.33% to 5,693.31.
The Nasdaq Composite posted the steepest loss among the major indexes, slipping 0.53% to 17,804.03.
"Donald Trump certainly knows how to grab the world's attention and keep all eyes focussed on him and his administration," said Danni Hewson, head of financial analysis at AJ Bell.
"Car makers are scrambling to work out how to mitigate the impact of auto tariffs due to come into place in just a week's time.
"Although investors had been steadily pricing in import taxes, the president's late night Oval Office address has sparked a significant sell off."
Hewson noted that car maker stocks tumbled globally on Thursday, as had many US automakers, whose complex supply chains meant they would face a huge headache trying to mitigate the worst of the impact.
"Donald Trump says the answer is a simple one, build in America to sell in America, but building from the ground up will take years and costs will have to rise to cover the period of upheaval.
"Tesla's share price sticks out like a sore thumb today.
"It's pretty much the only automaker to be in positive territory because of the nature of its US operations, even though Elon Musk has warned that the impact on the business would not be trivial."
GDP grows faster than expected in fourth quarter
In economic news, the Commerce Department reported that gross domestic product grew at an annualised rate of 2.4% in the fourth quarter, slightly above the expected 2.3% but down from 3.1% in the prior quarter.
The modest upward revision was driven by lower imports, though analysts remain cautious about first-quarter prospects amid ongoing trade tensions and weather-related disruptions.
In the labour market, initial jobless claims dipped by 1,000 to 224,000 for the week ended 22 March, slightly better than forecasts and still consistent with a tight employment environment.
Continuing claims also declined, and the four-week moving average edged lower, reinforcing the view that hiring remains resilient despite restrictive monetary policy and softening economic indicators in early 2025.
Trade data offered a partial offset to growth concerns, as the US goods trade deficit narrowed for the first time in four months.
February's shortfall shrank by 4.9% to $147.9 billion, as exports picked up amid efforts by companies to preempt potential tariff increases.
However, the figure still came in wider than economists had anticipated.
Housing showed tentative signs of improvement, with pending home sales rising 2.0% month-over-month in February, according to the National Association of Realtors.
The increase came as mortgage rates eased slightly, though sales remained down 3.6% from a year earlier, reflecting continued caution among buyers.
Meanwhile, regional manufacturing activity showed a modest recovery.
The Kansas City Federal Reserve's manufacturing index rose to +1 in March from -13 in February, suggesting a slight rebound in factory conditions.
Automakers in the red, Dollar Tree surges after announcing new facility
In equities, shares of major US automakers fell sharply following Donald Trump's announcement of his proposed 25% tariff on foreign-made vehicles, while electric vehicle maker Tesla edged higher.
General Motors dropped 7.36% and Ford declined 3.88%, as investors reacted to concerns over the impact of higher tariffs on global supply chains and vehicle pricing.
In contrast, Tesla rose 0.39%, supported by its predominantly domestic production, which could shield it from potential trade disruptions.
Auto parts retailers also saw strong gains, with Advance Auto Parts up 6.74%, AutoZone rising 3.98%, and O'Reilly Automotive gaining 3.09%.
Among other retail stocks, Dollar Tree surged 11.18% after announcing a new $1.5bn revolving credit facility with JPMorgan Chase and other lenders.
The agreement, effective 21 March, would provide additional liquidity and included an option for up to $350m in letters of credit.
The facility was set to mature in 2030, with provisions for possible extensions.
Reporting by Josh White for Sharecast.com.
Dow Jones - Risers
Verizon Communications Inc. (VZ) $44.96 1.77%
Visa Inc. (V) $349.80 1.65%
Procter & Gamble Co. (PG) $168.76 1.28%
Apple Inc. (AAPL) $223.85 1.05%
Coca-Cola Co. (KO) $70.74 1.03%
Johnson & Johnson (JNJ) $163.19 0.87%
Intel Corp. (INTC) $23.62 0.85%
Walgreens Boots Alliance, Inc. (WBA) $11.16 0.54%
Walmart Inc. (WMT) $85.63 0.49%
Boeing Co. (BA) $179.11 0.31%
Dow Jones - Fallers
3M Co. (MMM) $148.44 -2.78%
Goldman Sachs Group Inc. (GS) $559.32 -2.61%
International Business Machines Corporation (CDI) (IBM) $246.27 -1.65%
American Express Co. (AXP) $272.02 -1.44%
JP Morgan Chase & Co. (JPM) $248.12 -1.16%
Salesforce.Com Inc. (CRM) $277.80 -1.13%
Dow Chemical Co. (DOW) $35.22 -0.96%
Chevron Corp. (CVX) $166.65 -0.79%
Cisco Systems Inc. (CSCO) $61.40 -0.65%
Merck & Co. Inc. (MRK) $87.59 -0.58%
S&P 500 - Risers
Dollar Tree Inc (DLTR) $76.95 11.18%
Advance Auto Parts (AAP) $40.35 6.74%
AutoZone Inc. (AZO) $3,827.52 3.98%
Abbott Laboratories (ABT) $131.62 3.74%
Dollar General Corp (DG) $87.54 3.35%
O'Reilly Automotive Inc. (ORLY) $1,423.62 3.09%
VeriSign Inc. (VRSN) $254.74 2.66%
Archer-Daniels-Midland Co. (ADM) $48.31 2.57%
FirstEnergy Corp. (FE) $39.45 2.52%
Hormel Foods Corp. (HRL) $30.31 2.50%
S&P 500 - Fallers
Jefferies Financial Group Inc. (JEF) $54.32 -9.85%
United Airlines Holdings Inc (UAL) $73.53 -5.57%
Nektar Therapeutics (NKTR) $0.76 -5.46%
Borg Warner Inc. (BWA) $28.82 -4.69%
Broadcom Inc. (AVGO) $171.99 -4.06%
Delta Airlines Inc. (DAL) $46.15 -3.99%
Ford Motor Co. (F) $9.90 -3.88%
Kohls Corp. (KSS) $8.60 -3.80%
Freeport-McMoRan Inc (FCX) $39.98 -3.64%
Arista Networks Inc. (ANET) $78.90 -3.31%
Nasdaq 100 - Risers
Dollar Tree Inc (DLTR) $76.95 11.18%
Trip.com Group Limited (TCOM) $65.18 3.28%
O'Reilly Automotive Inc. (ORLY) $1,423.62 3.09%
JD.com, Inc. (JD) $42.89 2.66%
T-Mobile Us, Inc. (TMUS) $268.28 2.20%
Biomarin Pharmaceutical Inc. (BMRN) $72.83 1.89%
eBay Inc. (EBAY) $66.81 1.88%
Mondelez International Inc. (MDLZ) $67.50 1.76%
Gilead Sciences Inc. (GILD) $111.16 1.73%
Verisk Analytics Inc. (VRSK) $296.89 1.66%
Nasdaq 100 - Fallers
Broadcom Inc. (AVGO) $171.99 -4.06%
Microchip Technology Inc. (MCHP) $50.79 -2.65%
American Airlines Group (AAL) $11.14 -2.62%
Expedia Group Inc. (EXPE) $169.07 -2.51%
Workday, Inc. (WDAY) $244.55 -2.49%
Asml Holdings N.V. (ASML) $690.63 -2.14%
Nvidia Corp. (NVDA) $111.43 -2.05%
Texas Instruments Inc (TXN) $180.76 -2.02%
Applied Materials Inc. (AMAT) $147.68 -1.99%
Skyworks Solutions Inc. (SWKS) $66.30 -1.92%
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