Nasdaq 100: Trump Tariff Plans Rattle Market, GameStop Climbs on Crypto Shift

Stocks Slide Late as Tariff Concerns Hit Auto Sector, GameStop Jumps on Bitcoin Bet

Equities turned lower late in the session after the White House confirmed that former President Donald Trump would announce new auto import tariffs at a press conference scheduled for 20:00 GMT. The announcement weighed heavily on automakers, with General Motors and Ford each dropping more than 1%, and Stellantis falling over 2%.

The move renewed concerns over the return of aggressive trade policies. Trump signaled the tariffs would be “more lenient than reciprocal,” softening expectations of sweeping measures, yet traders remain cautious. The update followed earlier reports hinting that the scope of the duties may be narrower than originally feared, with potential delays for some sector-specific levies.

The S&P 500 pulled back from its recent recovery, which had seen it rise 5% in eight sessions after briefly entering correction territory earlier in the month. While Tuesday marked a third straight gain for the benchmark index, Wednesday’s retreat reflects ongoing tension around trade policy and its implications for corporate earnings.

Which sectors are showing stress and strength?

Technology led the declines, dropping 2.79% as investors took profits after recent gains. Consumer discretionary was down 2.1%, pressured by weakness in auto names. Communication services also slid 2%, while industrials and financials lost 0.89% and 0.54% respectively. On the other hand, defensive sectors offered support, with consumer staples rising 1.24%, and utilities and real estate posting modest gains.

The renewed volatility comes as market participants continue to digest macro risks, including geopolitical uncertainty and the prospect of tariffs impacting supply chains. These developments are forcing rotation out of growth-sensitive names and into more stable plays.

Is GameStop’s crypto strategy driving real investor interest?

GameStop surged 15.2% after announcing it would invest in bitcoin, reigniting retail interest in the meme stock. The move echoes strategies seen at firms like MicroStrategy, and aligns with growing retail enthusiasm for digital assets. GameStop was the seventh most traded stock among U.S. retail investors mid-session, according to J.P. Morgan.

While the crypto allocation may stoke short-term interest, analysts are questioning the sustainability of the rally. Wedbush’s Michael Pachter cautioned that GameStop trades at a premium to its cash holdings, unlike other bitcoin-exposed firms. Volatility could increase as the company’s valuation becomes more sensitive to crypto price swings.

Market Outlook

Traders will be closely monitoring Trump’s press conference for clarity on the scope of the auto tariffs and any signals on broader trade measures. With economic data light and earnings season winding down, headlines around trade and crypto could drive short-term moves. Equity markets remain vulnerable to policy surprises, particularly in sensitive sectors like autos and tech.

More Information in our Economic Calendar.