US benchmark equity indexes experienced gains during intraday trading as the White House issued a one-month tariff exemption to automakers. The Nasdaq Composite rose by 1.1%, reaching 18,478.4, while the Dow Jones Industrial Average increased by 0.9% to 42,899.1. The S&P 500 also saw a rise, climbing 0.8% to 5,826.
Among the sectors, materials led the gains, while the energy sector experienced the most significant drop during this period. The recent decision from President Trump to exempt automakers from tariffs on vehicles imported from Mexico and Canada for one month has implications for the automotive industry.
This decision came after meetings with leaders from various US automakers, who urged for a waiver on the 25% tariffs related to vehicles that adhere to the US-Mexico-Canada Agreement's rules of origin. In addition to this, US Treasury yields witnessed gains, with the 10-year note rising by 6.7 basis points to 4.28% and the two-year note increasing by 2.3 basis points to 3.98%. Economic reports provided a mixed view of the US services sector in February.
Data from the Institute for Supply Management indicated that activity in the services sector unexpectedly accelerated, while S&P Global's findings hinted at a slowdown in growth. Both surveys reflected ongoing uncertainty surrounding the administration's trade policies. Moreover, the latest report from Automatic Data Processing revealed that employment growth in the US private sector decelerated last month, marking the slowest pace since July.
Chief Economist Nela Richardson highlighted that "policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month." Looking ahead, the Bureau of Labor Statistics is anticipated to release data on Friday indicating that the US added approximately 160,000 nonfarm jobs in February, reflecting an increase from the previous month's gain of 143,000, according to a survey compiled by Bloomberg. In commodity news, West Texas Intermediate crude oil prices fell by 3.3%, trading at $65.99 per barrel at intraday Wednesday. In company-specific developments, Brown-Forman reported fiscal third-quarter earnings that exceeded market expectations despite an unexpected decline in revenue year-over-year.
The wine and spirits manufacturer maintained its full-year outlook, with its class A and B shares surging over 9.5%, ranking among the top gainers on the S&P 500. Conversely, shares of CrowdStrike experienced a steep decline of 7.3%, marking the heaviest loss on the S&P 500. The cybersecurity firm released fiscal first-quarter and full-year earnings outlooks that fell short of market expectations. Abercrombie & Fitch faced a near 12% plunge in its shares during intraday trading, following a sales growth slowdown forecast for fiscal 2025, along with first-quarter earnings guidance that missed Wall Street estimates. In the gold market, prices increased by 0.3%, reaching $2,928.90 per troy ounce, and silver saw a rise of 2.3%, trading at $32.13 per ounce..