The tech selloff returned Wednesday as tariff talk drove investors to duck and cover.
Concerns about potential levies on everything from cars to microchips weighed down bellwether stocks like Nvidia, Tesla and Broadcom at the open. The expected announcement of new automotive-industry tariffs fueled further selling, and the Nasdaq Composite closed down 2%. The S&P 500 gave up 1% and the Dow Jones Industrial Average fell less than half a percent, or 132.71 points, to 42454.79.
Auto stocks fell in after-hours trading after President Trump said he would impose 25% tariffs on global automotive imports to the U.S.
Technology shares had bounced back recently, with the so-called Magnificent Seven rising 6.2% in the previous three sessions, their strongest performance since November, according to Deutsche Bank. But an exchange-traded fund tracking the Mag 7 pulled back about 3% Wednesday. Tesla and Nvidia both lost over 5%.
“Last Friday [Trump] said tariffs might not be as broad and then he says he might add copper and autos,” said Sam Stovall, chief investment officer at CFRA Research. “Now we’re right back into defensive mode.”
General Motors fell about 3% and Ford finished almost unchanged. Signs that the Trump administration had been narrowing its plans for tariffs had boosted markets. However, investors remain on edge ahead of April 2, when the White House is expected to announce new levies. Investors and consumers continue to be whiplashed by the near daily twists in trade policy.
Consumer and business sentiment has also been dented by the White House’s rapidly evolving tariff threats, survey data has shown, though other indicators suggest the U.S. economy remains on strong footing. Durable-goods orders rose 0.9% in February, new data showed Wednesday, blowing past expectations for a 1% decline.
Nevertheless, stock investors dumped growth stocks and sought shelter in industries that perform better during economic recessions like consumer staples and utilities. Hormel Foods and Tyson Foods gained nearly 3% on Wednesday.
The yield on the benchmark 10-year Treasury note closed at 4.34%, up from 4.307% Tuesday. New York-traded copper futures hit a new high of $5.216 per pound Wednesday, a 0.64% rise on the day and a 3% gain over the last two sessions. The White House has threatened tariffs on copper imports.
Tech stocks led the declines. Amazon, Alphabet and Meta Platforms all slipped more than 2%, with Nvidia, Tesla, and server manufacturer Super Micro Computer falling 5% or more.
Overseas stocks were mixed. Indexes fell across Europe, while a rally in Nintendo shares helped drive the Nikkei 225 higher in Tokyo.
—By Chelsey Dulaney and Matt Wirz
