Stock market today: Dow, S&P 500, Nasdaq pare losses after US delays tariffs against Mexico
Published On Feb 3, 2025, 10:56 AM
US stocks faced a sell-off due to President Trump's announcement of tariffs on China, Canada, and Mexico, with declines particularly pronounced in tech and consumer discretionary sectors. While initial sharp losses were moderated by a delay in tariffs against Mexico, the sentiment remains bearish as investors anticipate retaliatory actions and economic repercussions. Notable declines were seen in shares of companies reliant on cross-border trade, such as major automakers and tech giants like NVIDIA and Apple. Economists warn these tariffs could negatively impact earnings and overall market dynamics, with potential price increases impacting consumers.
Stock Forecasts
GM
Negative
The announcement of tariffs creates uncertainty and could adversely affect companies with significant cross-border trade exposure. Given the bearish market reaction and analysts predicting ongoing downward pressure on consumer discretionary and tech stocks, a cautious investment approach is warranted.
F
Negative
Given the ongoing concerns regarding supply chain disruptions and increased costs due to tariffs, Ford may struggle in the near term despite its large US manufacturing footprint. The company is likely to face pressure from both rising supply costs and potential consumer pullback.
TSLA
Negative
The tariffs announced by President Trump are expected to negatively impact the main automotive companies, as they are heavily dependent on imports and cross-border trading with Canada and Mexico. This reliance makes them highly vulnerable to increased tariffs and trade tensions.
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