Rivian rallied 5.9 per cent. Elon Musk’s Tesla drove 2.4 per cent higher, and because it’s one of the most influential stocks on Wall Street by virtue of its massive size, it was the single strongest force pushing upward on the S&P 500.
Companies that could benefit from drivers opting against buying new cars also rose. Among auto parts retailers, O’Reilly Automotive climbed 2.8 per cent, and AutoZone gained 3.9 per cent. CarMax, which sells used autos, rose 1.5 per cent.
Expectations are high for stock markets worldwide to remain shaky as an April 2 deadline approaches for tariffs. That’s what Trump has called “Liberation Day,” when he will roll out tariffs tailored to the United States’ trading partners. In each case, he said the “reciprocal” tariff will match the burden the other country places on the United States, including things like value-added taxes.
Hopes are still high that Trump may ultimately opt for more targeted or milder tariffs that are less painful for the global economy than feared. But even if he does, all the talk about tariffs has already made US consumers and businesses feel more cautious and pessimistic. If such sour moods convince them to pull back on their spending, it could hurt the economy.
So far, the economy has seemed to be holding up.
One report on Thursday said slightly fewer workers applied for unemployment benefits last week than economists expected. It’s the latest sign the job market may be settling into a “low fire, low hire” state.
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A second report said the US economy’s growth during the final three months of last year was slightly stronger than earlier estimated.
The better-than-expected data helped Treasury yields in the bond market remain relatively steady. The yield on the 10-year Treasury rose to 4.37 per cent from 4.35 per cent late Wednesday.
On Wall Street, Petco Health & Wellness jumped 28.9 per cent after the retailer reported slightly stronger results for the latest quarter than analysts expected.
In stock markets abroad, indexes fell across much of Europe after finishing mixed in Asia.
Japan’s Nikkei 225 fell 0.6 per cent following the losses for many of its automakers, and Japanese Prime Minister Shigeru Ishiba said Thursday, “We strongly request that tariff measures not be applied to Japan.”
In China, stocks rose 0.1 per cent in Shanghai and 0.4 per cent in Hong Kong.
Chinese automakers and parts manufacturers have been expanding sales around the world, but not in the United States, so any impact from the tariffs announcement would be an indirect one.
AP
