Stock market today: S&P 500, Nasdaq, Dow rally after Trump pauses Canada, Mexico auto tariffs

Published On Mar 5, 2025, 4:08 PM

On March 5, 2025, U.S. stocks experienced a rally, particularly driven by the tech-heavy Nasdaq Composite, which increased by more than 1.4%. This uptick followed President Trump's announcement of a one-month exemption from tariffs on automobiles coming from Mexico and Canada, which provided relief to major automakers like Ford, GM, and Stellantis, whose shares surged by at least 5%. The broader market had been under pressure due to escalating trade war concerns and dismal job growth data from ADP, which reported only 77,000 job additions in February, significantly below expectations.

Stock Forecasts

F

Positive

The one-month exemption from tariffs is likely to provide short-term relief to automakers and boost their stock prices. However, concern regarding long-term economic impacts from tariffs and ongoing trade tensions still loom. Investors might consider selling on rally peaks in the automotive sector as the overall economic outlook is uncertain.

GM

Positive

Similar to Ford, GM is poised to benefit from the tariff exemption, which alleviates immediate financial pressures. The stock is likely to see positive momentum in the short term until further tariff decisions are made by the administration.

STLA

Positive

Stellantis stands to gain from the tariff relief, and market sentiment around U.S. automakers may see a rebound. Nonetheless, continued scrutiny of trade policies makes the outlook less stable beyond the short term.

Related News

Stocks rallied on Wednesday as President Trump granted a one month tariff exemption to automakers.

Stocks rallied on Wednesday as President Trump granted a one month tariff exemption to automakers.

F
GM
STLA

President Donald Trump's tariff plans are disrupting industries and international trading relationships, with some industries set to take bigger hits due to reliance on imports.