Live Updates
Auto Tariff Lifeline, TSLA, LCID Rise
Stocks remain under pressure as elevated inflation continues to drive worried sentiment. Bank of America CEO Brian Moynihan reportedly warned that interest rates are going to stay put for a while, and the markets are suggesting he might be correct. Just yesterday Fed Chairman warned that the central bank was in no hurry to lower rates, and the latest CPI data only strengthens his argument. The Dow has cut its losses in half to about 226 points.
The auto sector is trading resiliently, including by a 2.2% gain in General Motors (NYSE: GM) while Ford (NYSE: F) is recouping some of recent losses on tariff chaos. The Trump administration has thrown the auto industry a potential tariff lifeline, suggesting potential exemptions to reciprocal tariffs for auto and pharmaceutical stocks. The Dow Jones U.S. Auto Manufacturers Index is up 4.4% while the S&P Pharma Industry Index is up fractionally.
Tesla (Nasdaq: TSLA) is leading the auto sector gains, advancing 4.4% alongside EV peer Lucid Group (Nasdaq: LCID). Benchmark analyst Mickey Legg has attached a “buy” rating on the stock alongside a $5 price target, reflecting about 77% upside potential from current levels. California-based Lucid recently tapped a new chief financial officer who starts later this month.
Chevron (NYSE: CVX) announced it will reduce its workforce by as much as 20% as part of its cost-cutting initiatives. The stock is down 1.4% in mid-afternoon trading.
The markets are focused on one thing today – inflation – and it’s sending the three broader indices spiraling. The Consumer Price Index (CPI) came in hotter than expected, with a 0.5% increase in January that sent the annual rate back up to the 3% threshold. In response, the Dow Jones Industrial Average sank as much as 400 points at its worst level followed by the Nasdaq Composite and S&P 500 with similar percentage declines. Tesla (Nasdaq: TSLA) is recouping some of its recently losses with a 3%-plus gain. Nvidia (Nasdaq: NVDA) is pressuring most of the Magnificent 7 amid profit taking ahead of earnings.
Here’s a look at the damage:
Dow Jones Industrial Average: Down 399.47 (-0.90%)
Nasdaq Composite: Down 89.15 (-0.46%)
S&P 500: Down 41.74 (-0.69%)
Key Points
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Stocks are reeling after inflation data came in hotter than expected for January.
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The Dow Jones Industrial Average spiraled as much as 400 points.
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Tesla and Apple are rare gainers in the Magnificent 7 group today.
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Market Movers
Apple (Nasdaq: AAPL) is extending its gains amid reports of an expansion into humanoid and non-humanoid robots. The stock is up almost 1% on the day. The Trump administration has selected an Apple employee to serve as the top safety regulator for regulatory probes into Elon Musk’s Tesla.
While Nvidia is down 1.8%, its partner Super Micro Computer (Nasdaq: SMCI), which provides AI infrastructure to the chip maker, is climbing 4% higher. Supermicro is benefiting from solid Q2 growth coupled with robust Nvidia demand.
Meta (Nasdaq: META) architected some changes to its accounting methods that could reportedly bolster its profits by billions of dollars in 2025.
Wall Street Moves
Wall Street analysts are updating their views on these stocks:
- UBS reiterated its “buy” rating on Walmart (NYSE: WMT), and the stock is up fractionally. The big-box retailer reports its latest quarterly earnings next week.
- Needham analysts have upgraded their view on GlobalFoundries (Nasdaq: GFS) from “hold” to “buy,” saying its well positioned to rise from a “cyclical downturn.”
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