US stocks slip as auto tariffs approach
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Traders working on the floor of the New York Stock Exchange on March 26.
PHOTO: REUTERS
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NEW YORK - US stocks veered off course on March 26 after the White House said President Donald Trump would announce fresh tariffs on the auto sector after markets close.
The Dow Jones Industrial Average closed down 0.3 per cent at 42,454.79, while the broad-based S&P 500 Index fell 1.1 per cent to 5,712.20.
The tech-focused Nasdaq Composite Index tumbled 2 per cent to 17,899.01, while the CBOE Volatility Index – Wall Street’s so-called “fear gauge” – jumped 7 per cent, reflecting market jitters.
The turn in market sentiment followed White House press secretary Karoline Leavitt’s remarks earlier on March 26 that Mr Trump would unveil the “auto industry” tariffs at 4pm (4am on March 27, Singapore time).
“It’s the continuation of worries regarding the tariffs and the impact on the economy,” Mr Peter Cardillo from Spartan Capital Securities told AFP.
“Everyone is (also) waiting to see what the reciprocal tariffs are going to be on April 2,” he added.
“So it’s a continuation of this wall of worries.”
US automakers fell on the news, with Tesla closing down 5.6 per cent.
General Motors shed 3.1 per cent, while Ford initially slipped, before reversing course to finish up 0.1 per cent. AFP
