US benchmark equity indexes closed lower on Thursday as investors reacted to President Donald Trump's executive order implementing new tariffs on auto imports.
The Nasdaq Composite fell 0.5% to 17,804, while the S&P 500 declined 0.3% to 5,693.3. The Dow Jones Industrial Average was down 0.4% to 42,299.7. Consumer staples, healthcare, and consumer discretionary were the only sectors that posted gains, while energy saw the steepest decline.
US Treasury yields were mixed, with the 10-year rate gaining 1.5 basis points to 4.4% and the two-year rate falling 2.7 basis points to 4%.
May West Texas Intermediate crude oil increased 0.3% to $69.83 a barrel on Thursday.
President Trump announced 25% tariffs on imports of automobiles and certain auto parts late Wednesday.
The tariffs are expected to be a "hurricane-like" headwind to foreign and many US automakers and could result in vehicle price increases, Wedbush Securities said.
In economic news, pending home sales in the US rose more than projected in February, according to the National Association of Realtors, which forecast mortgage rates to fall moderately this year from 2024.
Weekly applications for unemployment insurance in the US declined while continuing claims fell more than expected, government data showed.
In the week ended March 22, the seasonally adjusted number of initial claims decreased to 224,000 from the previous week's upwardly revised 225,000 print.
"Initial claims for regular state benefits have stabilized at a level consistent with limited private sector layoffs, while continued claims remain elevated as unemployed workers are finding it tougher to find new jobs in a slow hiring environment," Oxford Economics Lead US Economist Nancy Vanden Houten told MT Newswires in an email.
In company news, Dollar Tree (DLTR) was the top gainer on the S&P 500, with shares up 11%. The discount retailer agreed to sell its Family Dollar business on Thursday to investment management firms Brigade Capital Management and Macellum Capital Management in a deal worth roughly $1.01 billion.
Luminar Technologies (LAZR) shares jumped 8.7% after the company announced a collaboration with Caterpillar (CAT) to integrate light detection and ranging technology into Caterpillar's autonomous machines.
Abbott Laboratories (ABT) was up 3.7%. The company received CE Mark certification in Europe for its Volt pulsed field ablation system for patients with heart rhythm disorders such as atrial fibrillation.
General Motors (GM) shares were down 7.3%, the worst performer on the S&P 500. GM may be more exposed to a potential impact from new tariffs as its production in Mexico and Canada is more than double that of Ford's (F), UBS Securities said in a note.
Gold increased 1.6% to $3,069.3 per troy ounce, while silver was up 3.2% to $35.33 per troy ounce.
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