The S&P 500 futures are down 4 points, the Nasdaq 100 futures are down 33 points, and the Dow Jones Industrial Average futures are up 57 points. Overall, contracts linked to these indices are mostly unchanged as investors consider the latest U.S. trade policy news.

President Trump announced a 25% tariff on all automobile imports starting April 3, with additional tariffs on select auto parts beginning May 3. He further warned of even larger tariffs if the European Union collaborates with Canada against the U.S.

The 10-year Treasury yield has increased by five basis points to 4.39%, and the 2-year yield is up by one basis point to 4.02%.

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Today's News

President Donald Trump's announcement of new tariffs on automobile imports has stirred significant concern in the automotive sector. The 25% tariff, set to start at 2.5% and gradually increase, impacts all vehicles not manufactured in the U.S. Automakers like General Motors (GM, Financial) and Ford are already experiencing stock declines, with GM down 6% in premarket trading. The move has also prompted responses from international leaders, with Japan and Canada expressing their discontent and planning retaliatory measures.

Investment firm Jefferies downgraded AMD (AMD, Financial), citing a widening performance gap with Nvidia (NVDA, Financial). Analyst Blayne Curtis highlighted that Nvidia's H200 GPUs outperform AMD's MI300x in real-world applications, emphasizing Nvidia's mature software stack. As a result, AMD shares fell 3% in premarket trading. This downgrade underscores the competitive pressures AMD faces in the semiconductor industry.

In other news, the U.S. Department of Health and Human Services is planning significant layoffs across multiple agencies, including the FDA and CDC. The cuts are expected to affect around 10,000 full-time employees. This restructuring effort reflects a broader trend of downsizing within the department since the start of President Trump's second term.

Nvidia (NVDA, Financial) is reportedly nearing a deal to acquire Lepton AI, an AI startup specializing in server rentals powered by Nvidia chips. This acquisition would bolster Nvidia's position in the cloud and enterprise software market, putting it in direct competition with major cloud providers like Amazon and Google. Nvidia's strategic moves highlight its ambitions to expand its influence beyond hardware into software and cloud services.

Robinhood (HOOD, Financial) is expanding its services by introducing wealth management, private banking, and an AI investment tool. These offerings aim to democratize access to premium financial services, traditionally reserved for the ultra-wealthy. The wealth management service, Robinhood Strategies, will be available to all Gold members, with a capped management fee, presenting a competitive edge in the fintech space.

Amidst the ongoing trade tensions, Stanley Black & Decker (SWK, Financial) faces potential challenges due to its high exposure to imported goods from China and Mexico. Deutsche Bank has tagged SWK as a Catalyst Call Sell Idea, anticipating a near-term stumble in the stock's performance. The escalating trade war adds uncertainty to SWK's outlook, making it a focal point for investors.

The U.S. Commerce Department revised the Q4 GDP growth estimate to +2.4% from +2.3%, reflecting a slowdown from Q3's 3.1% increase. The revision was influenced by a decline in imports and a deceleration in investment and exports. However, consumer spending showed resilience, providing some support to the economy amidst these challenges.

GuruFocus Stock Analysis

• Nvidia Falls as AI Optimism Cools and Technical Signals Weaken by Faizan Farooque
• AMD Downgraded by Jefferies to "Hold", Slashes Target to $120 on AI Setback by Nauman khan
• Goldman Sees More Upside in Walmart as Automation Strategy Gains Traction by Muslim Farooque
• Nasdaq Re-Enters Correction Territory, Slides Over 10% From December High by Nauman khan
• Jefferies Downgrades AMD, Warns on Lagging AI Progress by Muslim Farooque