US markets finished in the red on Thursday, dragged down by fresh trade tensions and uncertainty over President Trump’s tariff policies. The Dow slipped 155 points, or 0.37%, marking its second consecutive daily loss. The S&P 500 dropped 0.33%, while the Nasdaq shed just over half a percent.
Auto sector under pressure
Leading the losses were major automakers. General Motors fell more than 7%, while Ford closed nearly 4% lower after Trump announced a sweeping 25% tariff on all cars and car parts not made in the US, effective from April 2. Tesla, seen as a relative winner due to its US-based production, managed to gain 0.4%.
Analysts say the uneven rollout and tone of Trump’s trade agenda is fuelling investor nerves. While the president has hinted that tariffs could be eased for China, he’s also warned of even larger levies on Canada and the European Union if they work together to oppose US trade moves.
Investor sentiment remains fragile
Despite Thursday’s losses, all three major indexes are still holding onto modest gains for the week. But under the surface, caution is growing. The latest survey from the American Association of Individual Investors showed bearish sentiment still elevated at over 52%, well above historical norms. Optimism, while slightly improved, remains stubbornly low.
Commodities and the dollar
Spot gold is trading 1.24% higher at US$3,056.84 an ounce.
Brent crude is trading 0.28% higher at US$74 a barrel.
One Australian dollar is buying 63.05 US cents.
Futures
The SPI futures are pointing to an 8 point fall.
