Stocks rebound on auto tariffs delay
Call it the tariff two-step.
Many of the areas of the market most bedeviled by the imposition of tariffs on Mexico and Canada saw large relief rallies on Wednesday after the White House issued a one-month exemption for auto imports.
The S&P 500 rose 1.1%, the Nasdaq 100 gained 1.4%, and the Russell 2000 was up 1%.
Every S&P 500 sector ETF finished higher besides energy and utilities. Materials led the way higher, while healthcare, communication services, tech, consumer discretionary, and industrials all rose by more than 1%.
General Motors, Stellantis, and Ford were standout performers, all up more than 5%.
JetBlue, American Airlines, and United Airlines also advanced about as much thanks to the policy tweak.
Some stocks were also impacted by the president’s address to Congress on Tuesday night:
Intel dropped after Trump called for the CHIPS Act to be scrapped.
On the other hand, Huntington Ingalls Industries sailed higher, as it’s seen as a chief beneficiary of the president’s pledge to revitalize the domestic shipbuilding industry.
Earnings-related reactions of note:
CrowdStrike slumped after its outlook for this year was far worse than any Wall Street analyst anticipated.
Campbell’s fell after slashing its guidance.
Foot Locker’s fourth-quarter earnings per share exceeded expectations, taking the sting out of some lackluster guidance.
It was the opposite story for Abercrombie & Fitch, which tumbled after its earnings outlook for Q1 disappointed, even though its fourth-quarter results were in line with Wall Street’s forecasts.
ChargePoint’s top-line beat was enough to spur a big gain for the stock, even as policy headwinds loom for the EV charging company.
Other movers:
Moderna booked monster gains after reports that insiders made big purchases of the company and a German court ruled that Pfizer violated its Covid vaccine patent.
CEO Alex Karp’s big stock sales weren’t an overhang on Palantir Technologies today, with shares up more than 6%.
Chewy soared after its CFO talked up how the online pet product retailer was benefiting from a “premiumization” trend and Bank of America said it was one of the e-commerce companies most insulated from tariffs.
Alibaba popped higher as China’s leadership placed an even higher priority on boosting domestic consumption.
