The Dow Jones Industrial Average and other major stock indexes dropped Thursday as Wall Street reacted to President Donald Trump's latest round of tariffs and early reports on productivity and weekly jobless claims. Early movers included Nvidia and Tesla.
On Thursday, the Dow Jones Industrial Average traded down 0.7%, or around 300 points. The S&P 500 declined 0.6%. And the tech-heavy Nasdaq composite fell 0.8%.
The 10-year Treasury yield ticked higher to 4.36% early Thursday. But oil prices dipped, as West Texas Intermediate futures traded near $69.65 per barrel.
Among exchange traded funds, the Invesco QQQ Trust was down 0.8%, while the SPDR S&P 500 ETF lost 0.6% after the open.
In stocks, Nvidia tumbled 5.7% Wednesday, closing at its lowest level since March 11. Shares are squarely below their 50-day and 200-day moving averages. Those are key areas to watch in the coming sessions. Nvidia stock dropped another 2.5% in early trading.
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Trump Auto Tariffs Hit Automakers
Late Wednesday, President Trump announced 25% tariffs on "all cars that are not made in the United States." The tariffs, effective April 2, will be in addition to any duties already in place. The new Trump tariffs apparently will cover finished autos, not auto parts. The goal is for automakers to set up more assembly plants in the U.S., especially from Canada and Mexico.
"Our automobile business will flourish like it's never flourished before," Trump said, but the tariffs could cause industry disruptions and spur significantly higher auto prices for U.S. drivers. Word of the auto tariffs surfaced before Wednesday's close.
In response, General Motors dropped more than 7% in morning trading on top of a 3% loss Wednesday. Among foreign automakers, Stellantis was down more than 2%. Toyota Motor fell more than 2% while Ferrari lost 1.6% more on top of a 4.7% plunge on Wednesday.
Ford Motor, however, managed a small 0.4% loss. And Tesla added 1%. Tesla had skidded 5.6% Wednesday, snapping a five-day win streak and falling back below the long-term 200-day line. Shares of the Elon Musk-led company remain around 40% off their record high of 488.54, reached on Dec. 18.
Early Thursday, the Commerce Department reported final fourth-quarter GDP numbers. GDP showed annual growth of 2.4%, meeting estimates. It was slightly higher than the previous estimate of 2.3%.
Meanwhile, the Labor Department's initial jobless claims edged higher to 224,000 vs. 223,000 in the previous week. They were expected to rise to 225,000, Econoday figures show.
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Dow Jones Falls
On Wednesday, blue chips on the Dow Jones Industrial Average dropped 0.3%, or 132 points, while the S&P 500 lost 1.1% and the Nasdaq sold off 2%.
Following the sharp losses, now is an important time to read IBD's The Big Picture column for how to handle the current market and to track the updated exposure level.
Among the best companies to watch in the current stock market are Heico, Tradeweb Markets, Bowhead Specialty and LandBridge.
Along with Apple and Nvidia, Dow Jones components making notable moves this week were Amazon.com, Microsoft and Cisco Systems.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Check for potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: Cisco Eyes Buy Point
Dow Jones component and networking giant Cisco Systems is tracing a flat base that has a 66.50 buy point, according to MarketSurge chart analysis. And shares are trying to retake their 50-day line, even as they fell 0.2% in morning action Thursday.
Outside the Dow, Tradeweb Markets is still in buy range above a cup-with-handle's 140.48 entry following last week's breakout move. Shares lost 0.4% Thursday.
Monday's IBD Stock Of The Day Heico is just below a 270.37 entry in a cup with handle, as shares inched higher Thursday.
Insurance leader Bowhead Specialty is just out of buy range past a 37.81 buy point in a cup base, according to IBD MarketSurge pattern recognition. Bowhead shares ticked 0.5% lower Thursday morning.
Finally, IBD Leaderboard stock LandBridge is in a 5% buy zone above a 76.22 entry from a double bottom base. Its relative strength line hit a new high this week. LandBridge stock fell 0.5% in early action Thursday.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Thursday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Bowhead Specialty | 37.81 | Cup base | |
| Cisco Systems | 66.50 | Flat base | |
| Heico | 270.37 | Cup with handle | |
| Tradeweb Markets | 140.48 | Cup with handle |
Source: IBD Data as of March 24
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Dow Jones Leaders: Amazon, Apple, Microsoft
Magnificent Seven stocks are on the mend following heavy selling pressure in recent weeks. Dow Jones component Amazon regained its 200-day line following gains over the last few sessions. Amazon moved down 0.9% early Thursday.
Apple, which continues to rebound from its recent lows, remains below its 200-day moving average line. Apple stock ticked down 0.2% in morning trades Thursday.
Finally, software giant Microsoft moved down a fraction Thursday. Shares hit a new 52-week low in mid March, but are rebounding.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
