The stock market is weighed down by tariff concerns, with Tesla and Nvidia plummeting.

The ATFX foreign exchange dealerU.S. stock market plummeted on Wednesday, primarily dragged down by declines in NVIDIA and Tesla shares. Investors are awaiting President Trump's announcement on car tariffs. Trump plans to reveal measures to impose tariffs on the automotive sector at a press conference, further escalating the global trade war he has fueled this year. Analysts predict that this move could raise car prices and hinder production. Trump has indicated that he will announce a series of reciprocal tariffs on April 2nd.

Tesla's stock plunged 5.6%, while General Motors fell 3.1%. Market uncertainty mainly surrounds the scale of tariffs, possible retaliatory measures by trade partners, and the ripple effects of tariffs on the global economy and businesses. Jamie Cox, managing partner at Harris Financial Group, noted, "The market is weary of the uncertainty around tariffs, especially in the automotive sector, which is at the forefront, becoming a major casualty of the negative economic impact brought by tariffs."

Additionally, heavyweight chip company NVIDIA plummeted nearly 6%, and Broadcom fell nearly 5%, causing the PHLX Semiconductor Index to retreat by 3.3%. Among the 11 sectors of the S&P 500 Index, the information technology sector had the largest decline, down 2.46%, followed by the communication services sector, down 2.04%. A survey shows a decrease in optimism among U.S. corporate CFOs in the first quarter.

Amid concerns about price hikes due to tariffs, many firms are boosting their inventories. Data indicates that U.S. durable goods orders unexpectedly rose in February. Meanwhile, Barclays has revised its 2025 target for the S&P 500 Index from 6600 points down to 5900 points. So far this year, the S&P 500 has fallen 3%, while the Nasdaq has dropped more than 7%.

Later this week, the main market focus will shift to Friday's release of the Personal Consumption Expenditures (PCE) Price Index, a key inflation gauge closely watched by the Federal Reserve.

Minneapolis Federal Reserve Bank President Neel Kashkari stated on Wednesday that he is uncertain about the impact of Trump's tariffs on the U.S. economy. He noted that tariffs might drive up prices, providing a reason for the Federal Reserve to raise interest rates, but they could also slow economic growth, thereby supporting a case for lowering rates.

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.