S&P500 Analysis: GM Down 6% on Tariff News, Staples Like Colgate Climb

Stocks Swing as Tariff Concerns Hit Auto Sector, Defensive Plays Gain Traction

U.S. stocks traded in a tight range on Thursday, with the S&P 500 bouncing between gains and losses as traders weighed President Donald Trump’s proposed 25% tariff on foreign-made vehicles. The policy, set to take effect April 2, sparked renewed concerns about trade tensions and their potential to disrupt global supply chains, especially in the auto industry.

How Are Markets Responding to Tariff Developments?

Auto stocks led declines, with General Motors falling 6%, Ford down 2%, and Stellantis off 1% following Trump’s announcement. The broader industrials sector slipped 0.33%, reflecting the tariff exposure. Technology also lagged, losing 0.43%, while energy shed 0.5%, pressured by weaker oil prices.

Meanwhile, consumer staples and discretionary names bucked the trend. The consumer staples sector rose 0.72% as investors moved into yield-generating, lower-volatility names.

Procter & Gamble climbed 1.1%, Colgate-Palmolive added 1.2%, and Coca-Cola gained 1.3%. All three offer dividend yields well above the S&P 500’s 1.37%, making them attractive in risk-off environments.

Which Stocks Are Making Big Moves?

Procter & Gamble plunged 17% following a sharp reversal from Wednesday’s 12% rally. The sell-off came after the retailer announced a $1.3 billion convertible debt offering aimed at acquiring bitcoin, raising concerns about capital allocation.

On the upside, Petco Health surged 34% after raising its EBITDA forecast above consensus, while Concentrix jumped 37% after beating top- and bottom-line estimates for the fiscal first quarter. Soleno Therapeutics spiked 43% on FDA approval for its Prader-Willi Syndrome treatment.

Other notable moves included Alibaba, up 3% after launching a new AI model, and Liberty Energy, which rose nearly 6% on an upgrade from Morgan Stanley tied to data center energy demand. Conversely, Verint Systems and TD Synnex sank 11% and 14% respectively on disappointing results and forward guidance.

What’s the Market Outlook from Here?

The tariff news injected renewed uncertainty into a market already weighing earnings season volatility and rate expectations. While defensive sectors attracted capital, the broader index lacked conviction, reflecting cautious sentiment.

Looking ahead, traders are watching for updates on auto sector lobbying efforts and potential retaliatory measures from trading partners. Economic data, particularly Friday’s PCE inflation report, will also be closely scrutinized for clues on the Fed’s policy path. For now, tariff-sensitive sectors remain under pressure, while high-yield defensives and select earnings winners may offer relative strength.

More Information in our Economic Calendar.