Wall Street gathers after Trump retires to some of his prices

By Stan Choe and Damian J. Troise

New York (AP) – American actions gathered after President Donald Trump withdrew some of his prices, which has hoped that he will be able to avoid a business war of the worst case which addresses the savings and sends higher inflation. The S&P 500 increased by 1.1% on Wednesday, bouncing after its sale which had erased all its “bump from Trump” since election day. The industrial average of Dow Jones also added 1.1% and the NASDAQ composite won 1.5%. The market increased after Trump said that he was granting a month’s exemption for us car manufacturers on his new rigorous prices for Mexican and Canadian imports. The jumps for the Ford and GM actions helped direct the market.

This is an update of news. The previous history of after follows below.

New York (AP) – American actions come together on Wednesday after President Donald Trump showed again that his last word on the prices will not always be the last. By temporarily backing up on some of his prices, Trump has revived Hope to Wall Street that he could avoid a worse trade war that makes money cring and sends inflation higher.

The S&P 500 was 1.3% higher in late, bouncing after a sale that had erased all of its “Trump bump” since the ballot day. The industrial average of Dow Jones increased by 573 points, or 1.3%, with a little less than an hour remaining in the trade, and the NASDAQ composite was higher by 1.6%.

The market has become highly upwards after Trump said that he granted an exemption of one month for us car manufacturers on his new rigorous prices for Mexican and Canadian imports. Trump took the plunge after talking with Ford, General Motors and Stellantis, who owns Chrysler.

All three large car manufacturers could have been injured by such prices due to the amount of production in countries. Trump’s announcement has sent relief via Wall Street, and Ford and General Motors’ actions both jumped more than 5% to help carry out a widespread rally through the market.

The concern is that such prices not only affect the profits for companies, but also to increase the prices of cars and other invoices for American households which are already struggling with still high inflation. Hope is that Trump uses the threat of prices as a negotiation tool and that he could ultimately establish less painful movements for the economy and world trade if he can win what he wants.

Of course, Trump did not cancel all the prices he announced on the largest trade partners in the United States, including on China. Its last blow can also add more uncertainty to a market which is already in shock. It was just Monday that Trump said that there was no more “place” for negotiations that could reduce the prices of Mexico and Canada, which took vigor on Tuesday and caused the American stock market to fall.

“The economic impact and the impact of consumers are still ahead of us,” said Sameer Samana, responsible for global actions and real assets at the Wells Fargo Investment Institute. “It comes back to what nobody really knows, and how long these prices are staying in place.”

Even if the prices end up being less hard than fearing, the threat of them has already had a negative effect on American households and companies.

Confidence between American consumers has strongly embittered due to the expectations of higher inflation due to prices. Companies, on the other hand, find it difficult to follow all the changes from Washington, and the American manufacturers have said that their growth was approaching the dropout speed in the middle of tariff worries.

Wednesday, some reports read the strength of the American economy. It was suggested that American employers suddenly fell on their hiring last month. The ADP report could be a warning signal before the more complete job report that comes from the American Labor Department on Friday.

A separate report indicates that the growth of American finance, real estate and other companies in the service sector is better than what economists expected. But companies also said that in the survey, they faced “chaos” and uncertainty due to prices, according to the Institute for Supply Management.

In total, a recent flow of reports lower than expected on the American economy has raised the possibility of a worst of cases known as “stagflation”. This is something that does not often happen, where the economy stagnates and inflation is high, and political decision -makers of the federal reserve do not have a good tool to repair it.

The American economy closed last year at a solid pace. If it were to be strongly weakening, the Fed could reduce its main interest rate in the hope of facilitating the loan and of granting the economy. But the rate drops are increasing on inflation. If the prices of eggs and other everyday items increased due to prices, this could be put in the Fed.

For his part, Trump said in an address before the congress on Tuesday evening that he was going ahead with the prices, more on the right track to enter into force on April 2.

“Prices are to make America rich and make America again large,” he said. “And it happens and it will happen fairly quickly. There will be a little disturbance, but we agree with that.

In Wall Street, Brown-Forman jumped 9.9% after the company behind Jack Daniel said higher profit for the last quarter than analysts. Perhaps even more important, the CEO Lawson Whiting also said that his business did not change his forecasts for future sales, even if “we are planning continuous uncertainty and opposite winds in the external environment”.

Whiting has said that the Canadian province’s decision to withdraw whiskeys from their store shelves is “worse than a price, as it literally removes your sales”, adding that action is “a very disproportionate response at a rate of 25%”. But he also said that Canada represented only 1% of total Brown-Forme sales.

At the losing end of Wall Street was Campbels. The food company fell by 2.1% after having reduced some of its financial forecasts, citing discouraging trends for its snack products

On the bond market, the performance on the 10 -year treasure increased to 4.27% following the report on American service companies of 4.18% just before. This helped him recover part of his net slide since January, while he had approached 4.80%, after concerns about the growth of the economy, he weighed on yields

In stock markets abroad, the indices increased in a large part of Asia and Europe. The indices climbed 2.8% in Hong Kong, 1.2% in South Korea and 1.6% in France.

German shares gathered 3.4% while the potential partners of the next government of the country said they wanted to loosen the rules that would allow more debts.

Actions outside the United States have done better than the S&P 500, even with Trump’s policies in America.

Commercial editors AP Matt Ott and Elaine Kurtenbach contributed.

Originally published: March 5, 2025 at 1:15 p.m. PST