Stocks fell on Wednesday ahead of President Trump's tariff announcement on automobile imports as investors supported taxes that could disrupt the automaker's supply chain and increase costs for consumers.
The S&P 500 dropped by about 1.1% that day, while the technology-rich Nasdaq composite was down by 2%. The recession reflects ongoing volatility in the stock market, which could slow the US economy by fostering investors' concerns that whipping up the tariffs around Trump's trade policy and content between investors.
Stocks of most major automakers dropped the White House news that Trump would announce new car rates Wednesday afternoon. And he extended their decline after announcing a plan for a 25% tariff on all cars shipped to the US. General Motors fell more than 3% when the market closed, causing another 5% to fall in post-market trading. Toyota also fell further, but Ford's shares, which ended the day slightly higher, slumped around 5%, slashing its modest profits in after-hours trading.
Tesla shares fell more than 5% when the market closed, but stock prices rose in post-market trading. Tesla shares have given up on some profits after the Trump administration said imported auto parts would also face tariffs.
The stock market has fallen over the past month. This is the wave that at one point left the S&P 500 at more than 10% below its February 19th peak. Despite recent daily profits, Wall Street sentiment continues to be attenuated by concerns that Trump's tariffs and trade war could push prices up sharply, block consumers and damage the economy.
