S&P 500 declines as markets assess Trump's auto tariffs implications

On Thursday, the S&P 500 stock market index closed with a decline amid investor reaction to US President Donald Trump's latest announcement on trade tariffs. As a result, General Motors stocks fell more than 7% during a turbulent trading session yesterday, while Ford shares plunged 3.9%.

Moreover, auto parts makers such as Aptiv and BorgWarner were down about 5%. Meanwhile, Tesla securities rose by 0.4% due to investors' hopes that tariffs would have less of an impact on its production. Apple shares managed to support the S&P 500, showing a growth of 1.05%

On Wednesday, Trump announced his plan to impose 25% duties on imports of all cars and light trucks on April 2. In addition, new reciprocal United States tariffs are also expected to take effect next week.

According to Jed Ellerbroek, portfolio manager at Argent Capital, Trump's volatile trade policy has created uncertainty on Wall Street. He notes that the US administration's actions have raised fears of potential supply chain disruptions, reduced investment, and higher inflation threatening global economic growth.