Indexes broke a three-day winning streak Wednesday just as President Donald Trump was set to announce tariffs on the auto industry. Stocks were also pressured by the prospect of more export controls as reciprocal duties are set to hit next week. Among those that felt the pain was artificial intelligence leader Nvidia, along with Tesla on the stock market today.
The Dow Jones Industrial Average fell 0.3%, but it fared best among the major indexes on Wednesday. The S&P finished 1.1% lower while the Nasdaq plunged 2%, or more than 370 points.
The tech-dominated Nasdaq remains well below its 200-day moving average while the S&P slipped back under that line Wednesday.
Volume on the New York Stock Exchange was lower and on the Nasdaq higher compared with the same time Tuesday. Breadth deteriorated, with decliners outnumbering advancers by roughly 7-to-3 on the Nasdaq and 9-to-5 on the NYSE.
Small caps on the Russell 2000 index fell further, down 1.1%, while the Innovator IBD 50 exchange traded fund underperformed, declining 2.1%. The yield on the benchmark 10-year Treasury note rose four basis points to 4.35%.
How The Sectors Fared; Nvidia Weighs On Dow
Among the S&P 500 sectors, consumer staples, utilities and energy gained while consumer discretionary and technology lagged.
Nvidia fell and weighed the most on the Dow Jones index amid fears of new checks on chip exports to China. Other tech leaders underperformed. Nvidia recently retook the 21-day moving average but fell below it again on Wednesday.
Earnings sent Chewy stock wavering. Shares started the day in the hole, then reversed to a gain. But by the session's end, Chewy stock finished the day down 1.1%.
Fourth-quarter sales and earnings beat estimates. Sales of $3.25 billion increased 15% while earnings per share of 28 cents rose 56% from the prior year.
Stock Market Today: Trump To Tariff Autos
Reports said that President Trump will announce tariffs on the auto industry at 4 p.m. ET Wednesday. White House press secretary Karoline Leavitt said Trump plans to hold a news conference and announce the tariffs. General Motors and Stellantis fell more than 3%. Ford managed a slight gain, however.
Overseas carmakers also felt the pinch. Mercedes-Benz Group sank more than 4% while Ferrari skidded nearly 5%. Toyota Motor and Honda both fell nearly 2%.
Tesla fell nearly 6% and ended a five-day winning streak ahead of its first-quarter delivery results, due April 2. Shares are hitting resistance at their 200-day moving average.
3:18 p.m. ET
Dollar Tree Pares Gains
Elsewhere, Dollar Tree pared gains after its fourth-quarter report. Shares jumped more than 9% on the planned sale of its Family Dollar business for $1 billion to Brigade Capital Management and Macellum Capital Management. But the stock trimmed those winnings down to 3%.
Despite the gain, Dollar Tree's downward-sloping moving averages indicate a bearish chart. The stock is also yet to clear its 50-day moving average.
Analysts had estimated sales of $3.2 billion with per-share earnings of 3 cents for the pet-food retailer. Shares added 0.5% on Wednesday.
Oil stocks neared buy points. Among Investor's Business Daily's 197 industry groups, 0il and gas royalty stocks, oil exploration and production stocks and oil and gas drilling group gained. Range Resources pulled back from a buy zone but remained near a buy point of 40.49. IBD Leaderboard holding LandBridge remained in a buy zone from a buy point of 76.22
2:01 p.m. ET
Chip Export News Hits Indexes; Insurance Stocks Near Buy Points
Indexes also fell amid Trump administration's latest stance on chip exports. That revelation came by way of Chinese companies that were added to an export blacklist due to national security concerns.
U.S. companies that want to sell chips to the blacklisted businesses will need government approval first. The list reportedly includes one of Nvidia's customers.
Insurance stocks nearing buy points included Warren Buffett's Berkshire Hathaway holding Chubb. Shares are in a consolidation with a buy point of 302.05.
Recent IBD Stock Of The Day Travelers also made progress toward a buy point of 269.56. IBD Leaderboard holding AON is in buy zone from a buy point of 395.33.
12:29 p.m. ET
Stock Market Today: Economic Data Pending
In economic news, the Commerce Department's new orders for durable goods rose 0.9% for February. That came in much better than an expected 1% decline.
More critical economic data is due later in the week. The U.S. Bureau of Economic Analysis plans to release productivity data for the fourth quarter on Thursday. GDP is seen edging higher to 2.4%, year over year.
Due Friday is the Fed's preferred inflation gauge, the Personal Consumption Expenditures price index, also from the Bureau of Economic Analysis. Economists see the PCE index staying unchanged in February at 0.3% month on month and 2.5% year over year. Core inflation is also expected to stay unchanged at 0.3% on a monthly basis and rise to 2.7% from 2.6% annually.
10:59 a.m. ET
These Dow Jones Stocks Gained
Elsewhere on the Dow, McDonald's and Chevron gained along with Proctor & Gamble.
Are These Magnificent Seven Stocks A Buy Now?
Alphabet | Amazon | Apple | Meta | Microsoft | Nvidia | Tesla
In other stocks, GameStop soared after fourth-quarter results. Sales of $1.3 billion declined 28% while earnings per share of 30 cents grew 36% from the prior year. The company also announced its plans to add bitcoin as a Treasury reserve asset.
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