US benchmark equity indexes showed impressive gains on Wednesday, driven by market reactions to the recent announcement of a one-month exemption for automakers from tariffs on imports from Mexico and Canada, articulated by President Donald Trump. The Nasdaq Composite surged by 1.5%, reaching 18,552.7, while the S&P 500 grew by 1.1% to settle at 5,842.6.
Similarly, the Dow Jones Industrial Average also increased by 1.1% to close at 43,006.6. Among the market sectors, materials emerged as the top performers, indicating robust activity, while the energy and utilities sectors faced declines, likely reflecting broader economic sentiments. In the bond market, US Treasury yields also experienced an uptick, with the 10-year note climbing approximately 3.4 basis points to 4.3%.
The two-year rate saw a slightly smaller increase of 0.2 basis points, bringing it close to the 4% mark—a critical threshold for investors gauging economic health. Turning to commodity markets, April West Texas Intermediate crude oil faced a downturn, falling by 2.7% to $66.40 a barrel during Wednesday’s trading session.
This drop could be indicative of shifting dynamics within the energy sector and potential oversupply concerns. On the economic front, the White House’s announcement regarding the temporary tariff reprieve for automakers from south of the border was made public by Press Secretary Karoline Leavitt.
This news surfaced after President Trump reportedly consulted with leaders from major automotive corporations such as Ford Motor, General Motors, and Stellantis earlier in the week. The temporary exemption may bolster investor sentiment in the automotive sector, which has faced challenges from global supply chain disruptions. Adding to the complex picture of the US economy, two surveys pertaining to the services sector's performance in February delivered a mixed outlook.
The Institute for Supply Management’s data pointed toward unexpected growth, yet S&P Global reported a slowdown, highlighting the existing uncertainty surrounding the future of trade tariffs under Trump’s administration. In a separate report, Automatic Data Processing indicated that employment growth in the US private sector moderated in February, marking the slowest pace since July 2024.
This deceleration may reinforce concerns regarding economic resilience and labor market recovery, which are critical as the country navigates post-pandemic challenges. In specific company news that shook investor confidence, CrowdStrike emerged as the most significant laggard on the S&P 500, with shares plummeting over 6% after the cybersecurity firm’s fiscal Q1 and full-year earnings forecasts disappointed market expectations.
On the contrary, Abercrombie & Fitch experienced a 9.2% decline in shares, following guidance for a slowdown in sales growth for fiscal 2025 and a Q1 earnings outlook that also fell short of Wall Street estimates. Conversely, biotech company Moderna stole the limelight as it ranked among the top gainers on the S&P 500, with shares surging over 16%.
This increase followed remarks from President Stephen Hoge at an investor conference, during which he expressed strong expectations for the potential approval of its investigational individualized neoantigen therapy by the year 2027. The precious metals market showed slight gains, with gold prices increasing 0.3% to reach $2,929.3 per troy ounce, while silver experienced a robust rise of 2.8% to $33.27 per troy ounce, reflecting safe-haven buying amid economic uncertainties..