Tomohiro Ohsumi / Getty Images
U.S. stock futures are mixed as market participants review President Donald Trump’s 25% tariff on all imported automobiles; shares of global automakers including “Big Three” firms General Motors (GM), Ford (F), and Stellantis (STLA) fall following the tariffs announcement; Nvidia (NVDA) shares are slipping further in premarket trading on worries over how new Chinese energy rules could impact chip sales there; and Goldman Sachs raises its year-end gold forecast to $3,300 an ounce. Here’s the latest information for investors.
- 1. US Stock Futures Mixed As Investors Weigh Auto Tariffs
- 2. Trump Announces New Tariffs for Foreign-Made Automobiles
- 3. Global Automaker Shares Fall on Tariffs announcement
- 4. Nvidia stock falls further on fears over new China energy rules
- 5. Goldman Sachs increases its year-end gold price target to $3300
1. US Stock Futures Mixed As Investors Weigh Auto Tariffs
Investors digest the latest U.S. Tariffs announcement. Nasdaq’s futures are down by 0.2%, after the tech index lost 2% during the previous session. S&P 500 futures are ticking lower and Dow Jones Industrial Average futures are pointing slightly higher after the indexes fell yesterday. Bitcoin (BTCUSD), which is currently trading at $87,000, has not changed much. The yield on the 10-year Treasury bill is increasing and now trades at nearly 4.4%. Oil futures are falling.
2. Trump Announces New Tariffs for Foreign-Made Automobiles
President Donald Trump on Wednesday announced a new import tax on all foreign-made cars and auto parts not compliant with the U.S.-Mexico-Canada Agreement (USMCA) in an escalation of his tariff-based trade policies that economists warned would likely push car prices higher. The levies will take effect “on or after 12:01 a.m.” ET April 3. The levies on auto parts will start “no later” than May 3.
3. Global Automaker Shares Fall on Tariffs announcement
CBS reported that the global carmaker stock market fell after Trump announced his announcement on automobile tariffs. The increase in average car prices could be as high as $10,000 according to an Anderson Economic Group analysis. Shares of General Motors (GM) are tumbling 6.5% in premarket trading, while those of fellow “Big Three” automakers Ford (F) and Jeep and Chrysler maker Stellantis (STLA) are falling 2.5% and more than 1%, respectively. Toyota (TM), Honda (HMC), and Volkswagen (VW) all have shares that are down around 2%.
4. Nvidia stock falls further on fears over new China energy rules
Nvidia’s (NVDA) stock is down nearly 2% in premarket trading, after falling nearly 6% yesterday. A report said that new energy regulations could impact the AI chipset maker’s business in China. Financial Times reported that stricter requirements for data centers could threaten sales of Nvidia’s less-powerful chip H20, which is tailored to comply with U.S. Export restrictions. Nvidia’s shares have lost a quarter of their original value since their record high reached in January. This was due to fears about declining AI expenditure and disruptions caused by trade policy.
5. Goldman Sachs increases its year-end gold price target to $3300
Goldman Sachs increased its year-end prediction for gold prices from $3.100 to $3.300 an ounce. This was due to the strong demand by central banks, and the solid inflows of funds into exchange traded fund, according to reports. Gold futures, which are rising 1.3% to $3,060 Thursday morning, crossed the $3,000-per-ounce threshold this month as investors seek safe havens amid market volatility.
