United States
U.S. markets closed lower on Wednesday after President Trump announced a new 25% tariff on “all cars that are not made in the United States.” The announcement, while widely anticipated during the trading session, was formally made after the market closed, reversing the gains seen over the past few days—particularly impacting technology stocks.
The S&P 500 fell 1.12%, losing 64 points to close at 5,712. Six of the eleven sectors finished lower, with defensive sectors such as consumer staples and utilities showing gains. The steepest declines were seen in the technology and communication services sectors. Elsewhere, the Dow Jones Industrial Average dropped 0.31% to 42,454, while the Nasdaq slid 2.04% to close at 17,899.
Among major tech names, Google fell 3.27% to $167.14, Meta declined 2.45% to $610.98, and Nvidia plunged 5.74% to $113.76. In private markets, OpenAI announced it expects revenue to triple to $12.7 billion. Its key partner and investor, Microsoft, reported $13 billion in recurring revenue for the fourth quarter. Microsoft shares fell 1.31% to $389.97.
Automakers were hit hard by the tariff news. General Motors dropped 3.12% during the session and fell an additional 6.97% in after-hours trading. Stellantis (formerly Fiat Chrysler) declined 3.55% during the session and lost a further 3.85% after the bell. Tesla also fell 5.58%.
U.S. bond yields rose slightly, with the 10-year Treasury yield up 3 basis points to 4.35%.
Europe
European markets also finished lower, with the Stoxx 600 falling 0.70% to 548.73, as investors remained cautious amid the growing global tariff narrative. Eight of the eleven sectors declined, led by healthcare and technology. Energy outperformed, supported by rising oil prices.
In the UK, the FTSE 100 managed a modest gain of 0.30%, closing at 8,689.59, thanks to strength in energy stocks. Shell rose 2.39%, while BP gained 1.10%.
Investment bank UBS released a report suggesting that the emerging global tariff regime could reduce UK GDP growth by 1%.
Bond markets were mixed. In Germany, the 10-year Bund yield was unchanged at 2.79%. In the UK, the 10-year gilt yield dropped 3 basis points to 4.725% after inflation data revealed a sharper-than-expected slowdown in price growth.
Australia
The Australian market has opened lower on Thursday, falling 0.54% to 7,956, as investors digested the potential global economic impact of the newly announced U.S. auto tariffs.
This followed a strong performance on Wednesday, when the ASX 200 rose 0.70% to close at 7,999, driven by gains in the banking and technology sectors. The local market continues to be influenced by developments in the U.S., and this trend is expected to persist in the near term.
In fixed income, Australian 10-year government bond yields are trading at 4.47%. The Australian dollar is weaker, with AUD/USD trading at 0.6287.
Commodities
Gold remained steady above the US$3,000 level, closing unchanged on the day at US$3,019. The precious metal continues to find solid support due to its safe haven appeal amid heightened market uncertainty.
Bitcoin edged lower to US$86,731, reflecting signs of waning risk appetite among investors.
Oil prices rose modestly, with West Texas Intermediate (WTI) up 55 cents to US$69.66 and Brent crude gaining 0.91% to US$73.79. The rise followed data from the U.S. Energy Information Administration (EIA) indicating a decline in domestic crude inventories for the week. Ongoing concerns about potential supply disruptions from Iran and Venezuela—following new U.S. sanctions—also supported prices. However, traders remain cautious, awaiting clearer signs on the effectiveness of the sanctions and their long-term impact on global supply.
Copper slipped back below the US$10,000 mark, declining to US$9,927 per tonne. Iron ore was trading at US$103.30, up 95 cents as Asian markets opened.
Economic Calendar
US:
- GDP (Q4) – 11:30pm
- Wholesale Inventories (Feb) – 11:30pm
This article was written by Paul Darwell, Rivkin Securities Pty Ltd. Enquiries can be made via [email protected] or by phoning +612 8302 3632.
