Dow Jones futures fell modestly after hours, along with S&P 500 futures and Nasdaq futures, as President Donald Trump announced global auto tariffs.

 

The stock market sold off Wednesday, led by the Nasdaq, on reports that new Trump tariffs were imminent.

 

Tesla and Dow giant Nvidia tumbled after megacaps led on Tuesday. Meanwhile, Palantir Technologies, cybersecurity firm Rubrik and German software giant SAP tumbled after flashing buy signals earlier in the week.

 

Palantir stock is on IBD Leaderboard. Rubrik stock is on the IBD 50.

 

DOW JONES FUTURES TODAY

 

Dow Jones futures were 0.3% below fair value. S&P 500 futures declined 0.35% and Nasdaq 100 futures fell 0.45%.

 

Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.

 

TRUMP TARIFFS ON AUTOS, EUROPE

 

President Trump late Wednesday announced 25% tariffs on "all cars that are not made in the United States" The tariffs, effective April 2, will be addition to any duties already in place. The new Trump tariffs cover autos and some parts, including engines, transmissions and powertrain components. Autos assembled in Canada and Mexico will only face tariffs on non-U.S. parts.

 

"Our automobile business will flourish like it's never flourished before," Trump said, but the tariffs could cause industry disruptions and spur significantly higher auto prices for U.S. drivers.

 

General Motors and Chrysler parent Stellantis fell solidly in late trading, after retreating in the regular session. Ford declined modestly overnight after edging higher Wednesday.

 

Trump hinted he could go easier on China tariffs as part of a TikTok deal.

 

Meanwhile, "reciprocal" tariffs coming on April 2 will not be fully reciprocal, The Wall Street Journal reported, citing Sen. Bernie Moreno, R-Ohio, and other officials. Higher tariffs would come if trading partners retaliate.

 

Earlier, the European Union's top trade negotiator told officials that he expects Trump tariffs "in the realm of 20%," the Financial Times reported Wednesday.

 

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STOCK MARKET SELLS OFF

 

The stock market showed ugly action Wednesday, with the S&P 500, Nasdaq and many growth plays such as Palantir, Rubrik and Tesla suffering significant technical damage.

 

The Dow Jones Industrial Average fell 0.3% in Wednesday's stock market trading, reversing lower but above its 200-day moving average. The S&P 500 index slumped 1.1%, back below its 200-day. The Nasdaq composite dived just over 2%. The small-cap Russell 2000 gave up 1%.

 

The Invesco S&P 500 Equal Weight ETF dipped 0.2% after initially moving above its 200-day line. The First Trust Nasdaq 100 Equal Weighted Index ETF declined 0.8%, below its 200-day line.

 

Insurers, aerospace and other defensive growth areas held up better, but generally gave up gains or turned lower as Wednesday's selling picked up.

 

There's been no follow-through day to confirm the new uptrend, despite Monday's FTD qualities. But it's notable that the Nasdaq and S&P 500 closed below Monday's lows. A close below an FTD low is a warning that the market rally is highly likely to fail ultimately.

 

The stock market rallied Monday on reports that Trump would impose reciprocal tariffs on April 2 but not sectoral tariffs at that time. But that catalyst looks shaky with Trump tariffs on autos, as well as sector tariffs expected for drugs, copper, lumber and more.

 

U.S. crude oil prices climbed 0.9% to $69.65 a barrel.

 

The 10-year Treasury yield rose three basis points to 4.34%.

 

ETFS

 

Among growth ETFs, the Innovator IBD 50 ETF gave up 2.05%. The iShares Expanded Tech-Software Sector ETF sank 2.4%. Palantir stock is a big IGV holding, with Rubrik also in the ETF. The VanEck Vectors Semiconductor ETF shed 3.3%, with Nvidia stock the No. 1 component.

 

ARK Innovation ETF sold off 4.6% and ARK Genomics ETF lost 4.3%. Tesla stock is still the top holding across ARK Invest's ETFs.

 

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NVIDIA STOCK

 

Nvidia stock skidded 6%, to the lowest close since March 11. NVDA stock is back below the 21-day line.

 

China has introduced energy-efficiency rules for advanced chips, the FT reported. Those rules, which haven't been enforced, would disqualify Nvidia's H20 chips.

 

Meanwhile, Microsoft has canceled AI data center projects in the U.S. and Europe, TD Cowen analysts said, the latest warning sign of an AI capital spending peak.

 

Other AI hardware stocks also tumbled Wednesday.

 

TESLA STOCK

 

Tesla stock fell 5.8% on Wednesday, back below the 200-day after reclaiming that level on Tuesday, according to MarketSurge. That snapped a big five-day rebound. TSLA stock did close above its 21-day line.

 

Late Tuesday, Canada froze $43 million in suspicious EV rebates for Tesla. It also excluded the U.S. EV giant from future EV rebates, explicitly as retaliation for Trump tariffs. Tesla recently warned that it could be singled out by other countries in a Trump trade war.

 

Tesla will likely report first-quarter deliveries on April 2.

 

PALANTIR, RUBRIK, SAP STOCK

 

Palantir stock fell 4.4%, wiping out most of Monday's gain, still above the 50-day line, but undercutting the 10-week. PLTR stock is working on a V-shape consolidation.

 

Rubrik stock plunged 7.6%, skidding below its 50-day line. RBRK stock had rebounded from the 50-day line on Monday, clearing a handle-like resistance area within an emerging consolidation.

 

SAP stock gave up 4.4%, falling below the 50-day line. The Germany-based software giant reclaimed the 50-day Monday, then broke a downtrend in a new flat base on Tuesday.

 

WHAT TO DO NOW

 

Investors that added exposure in the past few days have to be nimble, cutting losses quickly. Be wary about new buys. The S&P 500 needs to get back above the 200-day. Meanwhile, Trump's reciprocal tariffs and Tesla delivery figures are due next Wednesday, kicking off a news-filled April.

 

A positive reaction to actual Trump tariff news could trigger a wave of buying opportunities. So keep your watchlists up to date, tracking stocks with strong relative strength. But have your exit plans ready too.

 

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

 

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

 

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