Global Markets: Wall Street Falls for the Second Consecutive Day Due to Tariffs

On Wall Street, stock prices fell again on Thursday, marking the second consecutive day of declines, as investors analyze how tariffs on automobile imports to the U.S. will impact the domestic automotive industry.

The Dow Jones index weakened by 0.37 percent, to 42,299 points, while the S&P 500 slipped 0.33 percent, to 5,693 points, and the Nasdaq index fell 0.53 percent, to 17,804 points.

The market remains under pressure due to U.S. President Donald Trump‘s decision to impose a 25 percent tariff on imports of all cars not manufactured in the U.S.

While Trump claims this will significantly boost the domestic automotive industry, investors are not convinced, as the price of General Motors shares plummeted more than seven percent yesterday, and Ford’s shares fell nearly four percent.

Shares of auto parts manufacturers Aptiv and BorgWarner also decreased by about five percent, while Tesla’s stock rose by 0.4 percent as investors believe that this electric vehicle manufacturer will be less affected by tariffs due to its predominantly domestic production.

Investors are cautious as Trump is expected to unveil a plan for reciprocal tariffs on imports from all countries that impose tariffs on U.S. products.

Trump’s fluctuating trade policy has created uncertainty on Wall Street as investors fear disruptions in supply chains, hindered investments, and rising inflation, which could negatively impact economic growth.

Additionally, investors are concerned about the escalation of the trade war as many countries have announced countermeasures in response to U.S. tariffs.

– “Investors are very cautious and worried about Trump’s policies. Even more than the policies themselves, they are concerned about the constant changes. This makes them really nervous when making long-term investment decisions, whether we are talking about companies or investors,” emphasizes Jed Ellerbroek, portfolio manager at Argent Capital.

As a result, stock prices on the world’s largest exchange have been falling for weeks. The S&P 500 index is now down seven percent from its record level of February 19. The Nasdaq, on the other hand, has fallen nearly 12 percent from its record level, and has been in correction territory for several days.

Both the S&P 500 and Nasdaq are on track to finish the first quarter of this year in the red. Since the beginning of the year, the S&P 500 has weakened by 3 percent, while the Nasdaq has dropped nearly 8 percent.

European stock markets also saw declines yesterday. The London FTSE index fell by 0.27 percent, to 8,666 points, while the Frankfurt DAX dropped by 0.70 percent, to 22,678 points, and the Paris CAC decreased by 0.51 percent, to 7,990 points.