Stocks fell on Wednesday ahead of President Trump's expected announcement of tariffs on car imports as investors supported taxes that could disrupt the automaker's supply chain and raise consumer costs.
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 automakers fell after a White House spokesman said Trump would announce new car rates Wednesday afternoon. General Motors fell more than 3% that day and Toyota fell almost 2%, but Ford's shares rose slightly, eliminating a modest loss the same day. Tesla stocks that bouncing off Monday after a plunge earlier this month were more than 5% lower than the day.
On Wednesday afternoon, details of the tariff remained unknown, including whether it would be widely applied to all imports of cars and car parts or be adjusted more narrowly.
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.
