Cesc Maymo Contributor/Getty Images
Takeaways
- The S&P 500 fell 1.1% on Wednesday, March 26, 2025, as tech stocks faltered and the White House prepared to announce tariffs on car imports.
- Tech losses were led by Super Micro Computer, Arista Networks Nvidia and Tesla.
- Cintas, a uniform supplier, posted strong earnings results, which highlighted benefits from recent acquisitions. Its shares moved higher.
The major U.S. equity indexes fell in the trading session of midweek following reports that President Trump was planning to announce a tax on imported vehicles.
The S&P 500 dropped 1.1%, while the Dow slipped 0.3%. The Nasdaq fell 2% due to a poor performance in the tech sector.
Super Micro Computer (SMCI) shares led losses on the S&P 500, plunging 8.9%. The drop on Wednesday was a continuation of the losses that began earlier in the week, after Goldman Sachs analysts upgraded Supermicro’s stock to “sell” and downgraded it from “neutral,” citing the increased competition within the AI server markets.
Arista Networks shares (ANET), a cloud networking specialist, also fell 6.1% as AI and chip stocks slumped. Nvidia (NVDA), which leads the Dow in losses, saw its stock fall 5.7% amid worries about further restrictions on AI chips sales in China. Shares of Vistra VST, a utility that attracted attention because it could power AI data centers with its technology, fell 5.9%.
Moderna (MRNA), a stock that is listed on the NASDAQ, fell 7% following reports that the United States would cease funding Gavi, The Vaccine Alliance. This global partnership aims to improve the availability of vaccines in developing nations. Other vaccine manufacturers also saw their shares fall.
After five consecutive positive trading sessions, Tesla’s (TSLA) share price fell 5.6% on Wednesday, threatening to derail the EV maker from its prolonged slump. The stock gained more than 27 percent in the week before Wednesday’s session. This was boosted by the prospect of reduced tariffs and a number of endorsements.
Cintas (CTAS) shares logged the S&P 500’s top daily performance, surging 5.8% after the supplier of uniforms and other products for the workplace reported better-than-expected sales and profits. The company cited recent acquisitions as the main driver of revenue growth, but announced that it would withdraw from its proposed takeover UniFirst (UNF), citing inability to agree upon key terms.
Paychex, a payroll processor (PAYX), also saw a boost in its quarterly earnings. Shares of the company rose 4.2% on Wednesday. Paychex’s quarterly sales were lower than expected due to the uncertain economic climate, but strict cost-control measures allowed the company to exceed forecasts.
Dollar Tree (DLTR), a discount retailer, announced a deal with private equity firms Brigade Capital Management & Macellum Capital Management to sell the Family Dollar brand for $1 billion. The company expects to close the sale later in the second-quarter and generate net proceeds of about $800 million. Dollar Tree shares increased 3.1%.
