Stocks Fall as Trade War Clouds Economic Outlook: Markets Wrap

  • US economy grew 2.4% last quarter as corporate profits jumped
  • Trump’s auto tariffs, threats on allies intensify trade war
Morgan Stanley's Wilson Stands by His S&P 500 Call
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Stocks fell after the US pushed ahead with tariffs on automakers, reinforcing concern about a widening trade war and offsetting data that showed faster-than-estimated growth in the world’s largest economy.

Just days before the end of a quarter that’s set to be the worst for the S&P 500 since 2023, the gauge slipped anew. Car giants from Toyota Motor Corp. to Mercedes-Benz Group AG and General Motors Co. got hit. AppLovin Corp. sank on a short report from Muddy Waters. Megacaps were mixed, with Apple Inc. up and Nvidia Corp. down. In late hours, Lululemon Athletica Inc. gave a gloomy outlook. The bond market flashed concerns about inflation as short-dated Treasuries outperformed longer ones.