US stocks fall as tariffs concerns weigh

US stocks closed lower on Thursday as investors reacted to President Trump's announcement of new tariffs on foreign-made automobiles, raising concerns about a potential trade war and its impact on the global economy. The S&P 500 fell 0.30%, the Dow Jones dropped 155 points and the Nasdaq 100 declined by over 0.50%. President Trump's plan to impose a 25% tariff on imported cars starting in April intensified fears of escalating trade tensions, particularly with key partners such as the EU and Canada. 

Meanwhile, the US economy expanded at an annualised rate of 2.40% in 4Q24, slightly above the previous estimate of 2.30%, driven by stronger net trade, increased government spending and a smaller decline in business investment. However, consumer spending growth was revised slightly lower, though it remained the strongest since 1Q23.

European markets also declined on Thursday as investors reacted to the new US auto tariffs, heightening trade war concerns and potential retaliatory measures. The Stoxx 50 fell 0.80%, while the Stoxx 600 was also down 0.80% as of 1212 GMT (02h00 SAST), well off its earlier lows of 1.10%, with the autos sector leading losses at 1.10%. Stellantis dropped 4.60%, while Mercedes-Benz and BMW also faced selling pressure. The FTSE 100 declined 0.27%, while Germany's DAX shed 0.78%. Eurozone bond yields dropped, with Germany's 2-year yield hitting its lowest 

In Asia, the Nikkei declined 0.60%, ending a two-day rally as automakers led the losses following President Trump’s tariff announcement. Meanwhile, the Hang Seng gained 0.40% for a second consecutive session, supported by optimism after hints of possible tariff reductions on China to facilitate ByteDance’s sale of TikTok. Additionally, a 0.30% year-on-year decline in Chinese industrial profits for the first two months of 2025—an improvement from the 3.30% drop in 2024—offered some support to market sentiment.

Domestically, the local stock market edged down 0.03% by Thursday’s close, while the rand traded at R18.21 per dollar at 18h00.

Oil prices moved higher, with WTI crude futures settling at $69.90 per barrel, extending gains of about 1% from the previous session. Traders weighed tightening crude supplies against concerns over the broader economic impact of the new US auto tariffs, set to take effect in the coming weeks.