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Stocks wane as auto tariffs weigh on markets

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All three of the major indexes (^DJI, ^GSPC, ^IXIC) opened slightly lower after President Trump announced a 25% tariff on vehicles imported into the US.

Morning Brief Anchor Madison Mills and Yahoo Finance Markets and Data Editor Jared Blikre break down the action at the open.

To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.

00:00 Speaker A

That is your opening bell on Wall Street. Let's get you a check on the markets here. You are looking at red on your screen off the back of those tariff announcements from the president here. You can see, we've just been kind of in a tight range this week, not a ton of conviction, not a lot of huge sells, huge buys here, coming in as the market does digest the totality of the policy uncertainty coming from the White House, a little bit from the Federal Reserve as well. But let's take a look at what you are seeing in your major averages this morning here. You've got your S&P 500 off about 3/10 of a percent, your tech heavy NASDAQ off about a half of a percent. Let's get a look at some of those individual movers for your tech heavy NASDAQ here. Because one of the things that was interesting is that we did see a fairly big sell off in some of those big tech names yesterday, so we were interested to see what we would get in terms of the market action this morning. And you're seeing a bit of a continuation of that dynamic. It's about half and half for your MAG 7 names. You've got Tesla, Alphabet, and Microsoft moving to the upside. Meantime, Apple, Amazon, Nvidia, and Meta, all in the red. Apple flipping around just a bit here. Obviously you want to watch these names because they are so heavily weighted in the broader averages that where they go so goes the market. Occasionally, though, we have seen a pick up in activity in the other 493. I just want to end by going global. I've been interested in looking at the global market action, just given some of the buying we've seen of equities outside of the United States, given the kind of decline in the US exceptionalism narrative. You can see here on your screen, lots of red in the United States. You're also seeing red in Europe. That's probably off the back of those tariff announcements. A lot of the European auto makers set to be substantially hit by that news, especially. You see in Germany here, you've got the DAX off 1%. And then you look at China, perhaps some of the Chinese tech news we've gotten this week, some lightness in Alibaba, for example, leading to some gains over in China here. But let's get a broader look at the US market with Jared Blikre. Hey Jared.

03:30 Jared Blikre

Thank you, Maddie. Uh, yesterday was kind of an important day in the markets. We had a three-day up streak that was broken in the NASDAQ, S&P 500, and NASDAQ 100 specifically. Also the MAG 7. And what's happening with all three of those is really interesting with respect to their 200 day moving average. They're all rejecting it, and the charts are going to look pretty similar here, but you have this fledgling rally that we've been tracking, and now we got that nasty down day. And everybody wants to know, is this the resumption of the downtrend or is this just a little wiggle in a new move up? And that's what we're trying to figure out here. Uh, so yesterday, the S&P 500 was down 1.1%, but there were more advancers than decliners. So the MAG 7, some of those mega caps really bringing things down, but under the hood, things weren't that bad. And I think that's an important thing to remember here. The VIX has been up two days in a row. This is a year to date look, so we're just coming off of those lows here, but not by a large amount. Still holding under the 20 level, which is important to some traders. And what I've been tracking here with the bond market and also dollar, the yields have been moving opposite the dollar. So here's the 10-year T-note yield. It is up three basis points, but nevertheless, the dollar is down here. And that's just been a recent development. In, uh, in prior epics in this bull market that began in late 2022, we've seen most most of the days, they've been in synchron synchronized and not lately, not lately at all. Um, let's take a look at the sector action. I was looking pre-market, things are kind of muted, although tech almost down by 1%, materials down 3/4 of a percent. If we look at the four-day totals here, that's what we're coming into this morning with the weekly look. Consumer discretionary, XLY is up 2 and 1/2%. That's an Amazon and Tesla story. And then we have communications communication services, that's Alphabet and Meta. And then financials. Those round out the leaders there. Not by a large amount, but nevertheless, leaders. And then to the downside, we're still looking at those defensive lagging here. Utilities. Uh, well, tech's not defensive, but we do have health care in there and real estate. So still kind of a bullish setup to the week, just nothing really that convincing. Uh, I want to get to the futures market where I'm tracking a couple different metals. We have gold. Gold is nearing its 17th record high of the year, and I'm trying to get that market. There we go. This is a four-day look. Let me put the year to date, just so we can see who's in the leadership position. That's going to be copper. But we'll do gold here. GC equals F up 14.7%. And let's put the year to date. You can see right there, pretty close to another record high. We'll have to see how that tracks into the close. And then copper. Copper has been making record highs over the last few days, and that is down just a little bit. But as I said just a minute ago, that is in the leadership position as far as the futures that I'm tracking. So really interesting to see how these tariffs play out, not only in the car market, not only in stocks, but also in the futures market. And I'll send it back to you, Brad, on that.

08:02 Speaker B

Jared, thanks so much. Appreciate it.