4:07pm: Auto tariffs in focus
US stocks finished Wednesday’s session in the red as investors braced for president Donald Trump to impose tariffs on the auto industry.
The Nasdaq led the declines down 2% at 17,899 points, weighed down by declines of more than 5% in both Tesla and Nvidia.
The S&P 500 fell 1.1% at 5,712 points while the Dow Jones was down 0.3% at 42,454 points.
3:40pm: Wednesday's headlines
Dollar Tree will sell its struggling Family Dollar chain to private equity firms Brigade Capital Management and Macellum Capital Management for $1 billion, a fraction of the $9 billion it paid for the discount retailer in 2015.
Copper prices hit a 10-month peak of US$4.58 per pound, which UBS suggested was supported by "tailwinds" of renewed speculation around President Donald Trump's tariffs.
GameStop shares jumped after the company announced plans to invest in bitcoin.
Canada has suspended all electric vehicle rebate payments to Tesla and barred the company from future federal EV incentive programmes, citing concerns over US trade actions.
3:15pm: Nvidia struggles
Nvidia shares were down about 6.2% on Wednesday afternoon, extending recent losses as investors reacted to concerns over new energy efficiency regulations in China that could impact the company's artificial intelligence chip sales.
“So far in March, the company has accumulated a loss of more than 8%,” said Antonio Di Giacomo, financial markets analyst for LATAM at XS.
At the same time, competition in AI chips is increasing, with rivals like AMD and Chinese manufacturers developing alternatives.
Despite these challenges, analysts still view Nvidia as a leader in AI and accelerated computing. “The company’s ability to adapt to these challenges will determine its stability and growth in the coming years,” Di Giacomo said.
2:15pm: Trump to announce auto tariffs this afternoon: report
US President Donald Trump plans to announce tariffs on automobile imports at a press conference on Wednesday, the White House said.
While details remain unclear, Trump previously suggested a 25% tariff on imported vehicles. Industry experts expect the move to be justified using a past trade investigation.
Shares of Ford and GM declined about 0.2% and 1.9%, respectively, following the news.
1:12pm: Positivity couldn't last
US stocks have driven global markets lower this afternoon, following new tariff announcements and restrictions in China aimed at impacting Nvidia, according to Chris Beauchamp, Chief Market Analyst at online trading platform IG.
“The more positive tone for US markets was not likely to last, and tariff reports and chip worries have driven Wall Street firmly into the red," Beauchamp commented.
"Measures in China designed to improve energy efficiency for data centres seem squarely aimed at Nvidia, and the news has dragged the stock, and tech stocks generally, sharply lower. It has lost its most-valuable company crown to Microsoft, continuing the pain for shareholders."
12:33pm: Dow holds steady
The Nasdaq, weighed down by declines in major technology stocks like Tesla and Nvidia, is down 1.5% at midday as concerns over economic uncertainty and tariff impacts continue to pressure the sector.
The S&P 500 has dropped 0.7%, reversing some of the gains seen earlier this week, with investors remaining cautious amid ongoing tariff discussions and mixed economic signals.
Meanwhile, the Dow Jones remains flat at +0%, holding steady despite broader market declines, as gains in sectors such as energy and retail offset losses in other areas.
11:45am: China trade negotiations
The Dow Jones experienced a nearly 5.6% drop in March but is showing signs of recovery, approaching the 43,000-point mark, noted Linh Tran, Market Analyst at XS.com. However, Tran warned the uptrend remains fragile due to ongoing macroeconomic risks.
This week, US-China trade negotiations are a key market focus, with escalating trade tensions and concerns over new tariffs. The market is closely monitoring developments, especially as Senator Steve Daines meets with Chinese Vice Premier He Lifeng ahead of a potential summit between Presidents Trump and Xi Jinping. If negotiations falter, it could heighten risk sentiment and pressure the Dow Jones further.
10:40am: Durable goods surprise
Durable goods orders rose 0.9% in February, defying expectations of a 1% decline, but the strength was largely driven by aircraft orders.
Defense aircraft orders surged 9.3%, while nondefense aircraft orders fell 5%.
Underlying business investment remains weak due to economic uncertainty, though a rebound in durable shipments suggests solid equipment investment in Q1.
"While some of the gain may signal a front-running of tariffs by businesses, we expect the strength more so reflects normal volatility and a rebound after some weak data," analysts at Wells Fargo wrote.
"Consider orders for autos for instance, which bounced 4% in February after four consecutive monthly declines. The 2% gain in electrical equipment and 0.9% gain in fabricated metals orders also followed declines in January.
"Further, core capital goods orders (excluding defense & aircraft) fell 0.3% last month, signaling a bit of a weaker trend in underlying capital investment demand than implied by the headline growth rate."
9.52am: Mixed start as Dow rises but Nasdaq falls
There has been a mixed start for US stocks, with some tech giants falling but oil heavyweights rising.
The Dow Jones opened 0.4% higher, while the Nasdaq Composite fell 0.6%, with the S&P 500 just below flat in the middle, down 0.1%. The domestically focused Russell 2000 was up 0.3%.
Fallers on the Nasdaq included Nvidia dropping 2.4%, fellow semiconductor stocks Marvell, ARM and ASML also dropping.
Risers on the Dow included Honeywell, Chevron, Caterpillar, IMB, Cisco and McDonalds.
8am: Slow start for Wall Street stocks expected
Stock futures were indicating a slow start to Wednesday on Wall Street, with the S&P 500 tipped to make a flat start, with four more trading days in the quarter.
The S&P 500 and Nasdaq 100 are both flat on the futures market, while the Dow Jones was up 0.1%.
This followed a third consecutive advance for the index yesterday for the first time since early February, despite an unexpectedly large drop in the US Conference Board’s consumer confidence indicator, reflecting tariff uncertainty.
Stocks were supported by a Ukraine-Russia Black Sea deal and hopes that next week’s reciprocal tariffs wouldn’t be as bad as previously feared.
President Trump said he will "probably be more lenient than reciprocal, because if I was reciprocal, that would be that would be very tough for people", while adding that "I don’t want to have too many exceptions".
Economic data on Wednesday includes mortgage applications, durable goods and capital goods.
Oil prices were back up to around three-week highs of above $69 a barrel, while gold was flat.
In company news, meme stock GameStop Corp (NYSE:GME) jumped afterhours on the news that the company will follow in MicroStrategy’s footsteps and "invest" corporate cash into Bitcoin.