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

Published On Mar 5, 2025, 4:08 PM

US stocks saw a rally on March 5, 2025, following President Trump's announcement of a one-month exemption from auto tariffs for major automakers such as Ford, GM, and Stellantis. This decision eased investor concerns regarding previous tariff threats which had caused selling pressure and pushed the markets to their lowest levels since the election. Technology stocks led the increase, with the Nasdaq Composite up by more than 1.4%, and the Dow and S&P 500 also making notable gains. However, concerns lingered as the job market showed signs of slowing, with only 77,000 jobs added in February, far below expectations.

Stock Forecasts

F

Positive

The temporary relief from tariffs is expected to boost automakers' stock prices in the short-term, especially as they recover from previous sell-offs due to tariff fears. Rising confidence among investors may translate to increased buying activity, particularly in the automotive sector.

GM

Positive

Similar dynamics of governmental easing on tariffs could provide necessary short-term support for GM after recent downturns due to trade war fears. Positive momentum could be expected if market confidence continues to improve following this announcement.

STLA

Positive

Given the potential reversal in tariffs and improved sentiment toward the auto sector, shares of Stellantis are likely to see upward movement. If tariff pressures are alleviated, traders may take positions anticipating gains in this stock.

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The president said he would pause a 25 percent tariff on cars coming from Canada and Mexico under a trade pact for one month, while other levies stay in place.

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Yahoo Finance will chronicle the latest news and updates on Trump's tariffs — from the threats to the eventual policy.

President Donald Trump granted U.S. automakers a one-month tariff exemption, the White House said Wednesday.

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