By Jack Pitcher and Ed Ballard
Stock indexes fell for a second day after the U.S. unveiled new tariffs on automakers.
President Trump said Wednesday he would slap 25% tariffs on automotive imports to the U.S. General Motors, Stellantis, and other automakers fell sharply Thursday.
Stocks of international rivals such as BMW, Toyota and Hyundai that export to the U.S. also came under pressure.
Foreign markets are more exposed to auto pain than the U.S., and some automakers have more to lose than others.
Overnight, the U.S. president threatened yet more tariffs. In a social-media post, he warned that if the European Union and Canada worked together to harm the U.S. economically, they would face levies that were "far larger than currently planned."
Indexes fluctuated before closing lower a day after the Nasdaq Composite fell 2%. Gold prices rose 1.3% to a fresh record.
After sharp losses earlier in the month, bleeding related to tariff news appears to have slowed. Some Wall Street analysts are taking solace in a run of decent economic data reports, and it isn't clear how determined Trump is to stick with the tariffs long term.
In recent trading:
--Indexes fell modestly. The S&P 500 dropped 0.3%, while the Nasdaq shed 0.5% and the Dow Jones Industrial Average was 0.4% lower.
--GameStop shares sank 22%. The company said it plans to privately offer $1.3 billion of convertible senior notes and will use some of the proceeds to buy bitcoin.
--Dollar Tree shares jumped 11%. The retailer said Wednesday it has agreed to sell its Family Dollar business.
--Benchmark Treasury yields crept upward. The 10-year yield had settled at 4.369%, up from 4.337% on Wednesday.
--Gold traded above $3,060 per troy ounce in New York. Mounting trade uncertainty has driven demand for safe-haven assets.
--European stocks slipped. In Asia, Japan's Nikkei 225 lost 0.6%, while the Hang Seng Index added 0.4%. South Korea's Kospi lost 1.4%.
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(END) Dow Jones Newswires
March 27, 2025 16:26 ET (20:26 GMT)
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