The artificial intelligence boom is now colliding with America's aging energy infrastructure, but natural gas may be the unexpected wildcard that keeps the AI revolution <a href="https://www.benzinga.com/topic/artificial-intelligence">from overheating—literally.</a>



OpenAI CEO Sam Altman issued a blunt warning Thursday on social media X: "Our GPUs are melting." The comment came as OpenAI imposed temporary usage limits amid surging demand for image generation in ChatGPT. 



As tools like ChatGPT become integral to business operations, the data centers powering them are drawing electricity at unprecedented rates. Now, the race is on to secure reliable electricity supplies.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">it&#39;s super fun seeing people love images in chatgpt. but our GPUs are melting. we are going to temporarily introduce some rate limits while we work on making it more efficient. hopefully won&#39;t be long! chatgpt free tier will get 3 generations per day soon.&mdash; Sam Altman (@sama) <a href="https://twitter.com/sama/status/1905296867145154688?ref_src=twsrc%5Etfw">March 27, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



<h3 class="wp-block-heading">AI Sends US Electricity Demand Soaring: Could Natural Gas Step In To Fill The Gap?</h3>



Surging AI adoption is poised to add unprecedented pressure to the U.S. power grid, with data centers emerging as the primary energy guzzlers, according to a report released this week by Natural Gas Intelligence titled &#8216;AI Rising: How Will Natural Gas Markets Evolve to Fuel the Demand Surge?&#8217;



The International Energy Agency projects that electricity demand in the United States through 2027 will rise by an amount equivalent to California's entire current power usage. That's a surge of roughly 400 terawatt-hours (TWh) in just three years.



Wood Mackenzie estimates total U.S. electricity consumption will soar from 4,000 TWh in 2024 to 6,000 TWh by 2050. Of that, between 395 and 660 TWh could be consumed by data centers alone by 2035—more than 10% of total power usage.



The fast pace of AI deployment is leaving little room for slow build-outs of renewable energy or long-term infrastructure upgrades. That's where natural gas steps in.



"Gas will certainly get its share of the new AI-driven power demand given its reliability, which is a must for these facilities," said Patrick Rau, senior vice president of strategy and research at Natural Gas Intelligence, according to the report.



Natural gas provides firm and flexible power, a critical advantage for hyperscale data centers that operate 24/7. Rau said the key bottleneck is how quickly new gas-fired capacity can come online.



<h3 class="wp-block-heading">Utilities And Oil Giants Jump In</h3>



Power producers are already rushing to meet the call. NRG Energy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRG#NYSE">NRG</a>) is fast-tracking 1.5 gigawatts (GW) of gas-fired projects in Texas. CEO Larry Coben said the company has signed multiple letters of intent with data center developers and is advancing 10 natural gas plants totaling about 8 GW in generation capacity.



In February, NRG also partnered with GE Vernova Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GEV#NYSE">GEV</a>) and construction firm Kiewit Corp. to develop up to 5.4 GW of new capacity explicitly linked to AI data centers.



Other utilities are following suit. American Electric Power Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AEP#NASDAQ">AEP</a>) is weighing $10 billion in potential investments to meet what it calls "incremental load," largely driven by AI, manufacturing reshoring and general economic development. The company already has customer commitments for 20 GW of additional load by 2030 across its 11-state footprint.



Oil giant Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) is another unexpected entrant in the AI race. In partnership with investor Engine No. 1 and GE Vernova, the energy giant plans to build co-located power plants across the Midwest, Southeast and West to support data centers with dedicated energy generation.



<h3 class="wp-block-heading">Will DeepSeek Reduce AI Data Centers Demand?</h3>



Chinese AI company DeepSeek has introduced a platform that claims to rival current models in performance—at a fraction of the power cost. That innovation, while promising, may add another twist to the AI power narrative.



"DeepSeek's improved computational efficiency may provide a pathway to quell hyperscalers' power requirement," according to a recent report by Rystad Energy experts.



"But it could also escalate the AI arms race and compel companies toward more power-intensive innovation."



For now, the message from the grid is clear: keep the pipelines flowing and the turbines spinning at full throttle.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/government/regulations/25/03/44503568/sp-says-us-growth-to-slow-in-2025-but-recession-not-most-likely-outcome-yet">S&amp;P Says US Growth To Slow In 2025, But Recession Not &#8216;Most Likely Outcome Yet&#8217;</a></li>
</ul>



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Tech

'Our GPUs Are Melting,' OpenAI's Altman Warns — Could US Natural Gas Power AI Revolution?

Lululemon Athletica Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>) reported financial results for the fourth quarter aftermarket close on Thursday. Here&#8217;s a rundown of the <a href="https://www.benzinga.com/pressreleases/25/03/b44523704/lululemon-athletica-inc-announces-fourth-quarter-and-full-year-fiscal-2024-results">athletic apparel company&#8217;s report</a>.



Q4 Earnings: Lululemon reported fourth-quarter revenue of $3.61 billion, beating the&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a>&nbsp;of $3.57 billion. The company reported fourth-quarter earnings of $6.14 per share, beating analyst estimates of $5.85 per share, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Total revenue was up 13% on a year-over-year basis as Americas net revenue increased 7% and international revenue climbed 38%. Total comparable sales increased 3% year-over-year.



Lululemon's total store count was 767 at quarter's end after opening 18 net new company-operated stores during the quarter. Inventories were up 9% year-over-year to $1.4 billion. 



The company ended the quarter with approximately $2 billion in cash and cash equivalents.



&#8220;Our&nbsp;fourth quarter&nbsp;results exceeded our expectations as we continued to introduce more newness and innovation into our product assortment,&#8221; said&nbsp;Calvin McDonald, CEO of Lululemon.



&#8220;As we begin 2025, we remain focused on executing on our Power of Three ×2 growth plan and delivering an exciting pipeline of innovation and brand activations for our guests and communities.&#8221;



Lululemon&#8217;s &#8220;Power of Three ×2 growth plan&#8221; calls for a doubling of the business from 2021 net revenue of&nbsp;$6.25 billion&nbsp;to&nbsp;$12.5 billion&nbsp;by 2026.



See Also: <a href="https://www.benzinga.com/25/03/44520779/stocks-slip-gold-rallies-auto-tariffs-benefit-tesla-rivian-punish-gm-ford-whats-driving-markets-thursday">Stocks Slide As Auto Tariffs Boost Tesla, Rivian And Hit GM, Ford: What&#8217;s Driving Markets Thursday?</a>



Outlook: Lululemon expects first-quarter revenue of $2.335 billion to $2.355 billion versus estimates of $2.39 billion. The company anticipates first-quarter earnings of $2.53 to $2.58 per share versus estimates of $2.74 per share.



Lululemon expects full-year 2025 revenue to be in the range of $11.15 billion to $11.3 billion versus estimates of $11.301 billion. The company sees full-year earnings in the range of $14.95 to $15.15 per share versus estimates of $15.30 per share. 



The company&#8217;s soft guidance appears to be weighing on shares after hours. Lululemon executives will further discuss the quarter on a call with investors and analysts at 4:30 p.m. ET.



LULU Price Action: <a href="http://benzinga.com/quote/lulu">Lululemon shares</a> were down about 10.5% year-to-date heading into the report. The stock was down 6.07% after-hours, trading at $320.80 at the time of publication Thursday, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>.



Read Next:



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<li><a href="https://www.benzinga.com/trading-ideas/technicals/25/03/44513787/nike-stock-hits-52-week-lows-is-the-sneaker-king-losing-its-step">Nike Stock Hits 52-Week Lows – Is The Sneaker King Losing Its Step?</a></li>
</ul>



Photo: Shutterstock.

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After-Hours Center

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LULU

Lululemon Q4 Earnings: Revenue, EPS Beat, Shares Slide On Soft Guidance

The newly imposed <a href="https://www.benzinga.com/government/regulations/25/03/44517885/trump-slaps-25-tariffs-on-autos-what-it-means-for-your-next-car-purchase">25% auto tariff</a> threatens to disrupt the global automotive industry, with analysts warning of sharp price increases and declining sales.



Goldman Sachs <a href="https://www.benzinga.com/25/03/44515578/trumps-25-tariff-set-to-hike-imported-car-prices-up-to-15000-higher-goldman-sachs-warns">estimates that imported </a>vehicle prices could rise by $5,000 to $15,000, while even U.S.-built cars could see cost hikes of $3,000 to $8,000 due to foreign-made parts. Here&#8217;s what analysts have predicted so far:



<ul>
<li>According to JPMorgan's Akira Kishimoto, Japanese automakers could face a potential hit of 4.46 trillion yen (about $29.44 billion), with Nissan Motor Co. Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NSANY#OTC">NSANY</a>), Mazda Motor Corp. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MZDAY#OTC">MZDAY</a>) and Subaru (OTC:<a class="ticker" href="https://www.benzinga.com/stock/FUJHY#OTC">FUJHY</a>) among the most vulnerable due to their reliance on imported vehicles. Toyota Motor Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>) remains JPMorgan's top pick, given its resilience and strong fundamentals, while Suzuki Motor (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SZKMY#OTC">SZKMY</a>) and Isuzu Motors (OTC:<a class="ticker" href="https://www.benzinga.com/stock/ISUZY#OTC">ISUZY</a>) are also favored among mid-tier manufacturers. Read Also: <a href="https://www.benzinga.com/25/03/44515578/trumps-25-tariff-set-to-hike-imported-car-prices-up-to-15000-higher-goldman-sachs-warns">Trump&#8217;s 25% Tariff Set To Hike Imported Car Prices Up To $15,000 Higher, Goldman Sachs Warns</a> </li>



<li>RBC Capital Markets&#8217; Tom Narayan warns that German automakers like Mercedes-Benz Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGYY#OTC">MBGYY</a>) and BMW Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWKY#OTC">BMWKY</a>) are at high risk, though potential retaliatory tariffs from Europe could deter further escalation. Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) may benefit due to its U.S.-based production, while Ferrari NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RACE#NYSE">RACE</a>) is expected to pass costs onto its high-end buyers. </li>



<li>JPMorgan autos analyst Ryan Brinkman has slashed price targets for major U.S. automakers, cutting General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) by 17% to $53 from $64, Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) by 15% to $11 from $13, and Ferrari by 12% to $460 from $525, citing heightened earnings risk. </li>
</ul>



With uncertainty around auto demand and the potential for sales fluctuations, investors remain cautious as the industry assesses the economic impact of these sweeping tariffs.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/markets/forex/25/03/44518720/april-2-tariffs-could-trigger-a-us-dollar-rally-to-sell-bank-of-america-economists-say" target="_blank" rel="noreferrer noopener">April 2 Tariffs Could Trigger A US Dollar ‘Rally To Sell,' Bank Of America Economists Say</a></li>
</ul>



Photo: Shutterstock

BMWKY

FUJHY

ISUZY

MBGYY

MZDAY

NSANY

RACE

SZKMY

TSLA

Japanese Automakers Face $29 Billion Tariff Hit, Nissan, Mazda, Subaru Most At Risk, Says Analyst

The U.S. economy is heading towards a historic surge in public debt, one that's set to eclipse wartime records and cast a long shadow over future economic <a href="https://www.benzinga.com/topic/expert-ideas">growth and policy freedom.</a>



In a report released Thursday, the Congressional Budget Office unveiled its latest <a href="https://www.cbo.gov/system/files/2025-03/61187-Long-Term-Outlook-2025.pdf">long-term budget outlook</a>. It forecasts U.S. fiscal and economic trends over the next 30 years.



The message was stark: the country's debt load, driven by ballooning deficits and rising interest costs, will break historical records, hinder economic growth, and amplify financial stability risks.



See Also: <a href="https://www.benzinga.com/analyst-ratings/price-target/25/03/44519930/tesla-turmoil-analyst-pins-hope-new-era-robotics-fsd">Tesla In Turmoil: Analyst Pins Hope On &#8216;New Era&#8217; Robotics, Self-Driving</a>



<h3 class="wp-block-heading">US Public Debt On Track To Reach 156% Of GDP By 2055</h3>



Federal debt held by the public, as a share of gross domestic product (GDP), is projected to reach 107% by 2029. This would eclipse the previous high set after World War II.



But the CBO doesn't see the climb stopping there. By 2055, debt will hit a staggering 156% of GDP and remain upward.



This explosive rise is largely due to chronic budget deficits. Over the next three decades, the federal deficit is expected to average 6.3% of GDP. That&#8217;s far higher than the 50-year historical average of 3.7%. By 2055, that deficit is seen reaching 7.3% of GDP.



That trajectory "would slow economic growth, push up interest payments to foreign holders of U.S. debt, and pose significant risks to the fiscal and economic outlook," the CBO wrote. 



It also warned the ballooning debt "could cause lawmakers to feel constrained in their policy choices."



<h3 class="wp-block-heading">Why Are U.S. Budget Deficits So High?</h3>



The CBO attributes these deficits to two primary culprits: rising interest payments on debt and persistent primary deficits, which exclude interest costs. 



Primary deficits are forecast to average 2% of GDP over the next 30 years, compared to 1.7% over the past five decades.



Spending is also part of the story, with the government's outlays hitting 26.6% of the GDP by 2055. A major portion of that will come from ballooning Medicare and Social Security costs as the population ages and healthcare expenses continue to climb.



"Rising interest costs; spending for the major health care programs, particularly Medicare; and spending for Social Security, especially over the next decade, drive that growth," the CBO said.



By 2055, spending on major healthcare programs is expected to account for 8.1% of GDP, up from 5.8% today.



<h3 class="wp-block-heading">Aging Population Leads To Slower Economic Growth</h3>



Slowing population growth—particularly among working-age individuals—will limit labor force expansion and, by extension, overall economic output.



The number of people aged 65 and older will grow faster than those in the prime working-age bracket, between 25 and 54, leading to a shift in the demographic structure. By 2033, the U.S. population would begin to shrink without immigration, the CBO said.



This demographic drag will cap real economic growth, with the economy expanding more slowly than it has over the past 30 years. Increased federal borrowing further dampens productivity and output, compounding long-term growth headwinds.



Real GDP growth is projected to decelerate steadily over the next three decades. The CBO estimates average annual growth of 2% from 2025 to 2035, slowing to 1.6% between 2036 and 2045 and further down to just 1.4% from 2046 to 2055—reflecting a weakening labor force and productivity drag from rising debt.



<h3 class="wp-block-heading">Risks Of Financial Disruption Could Threaten The Dollar Reserve Status</h3>



While the inflation picture appears stable, with rates projected to hover around the Federal Reserve's 2% target from 2027 onward, rising federal debt introduces new vulnerabilities to the outlook.



 The interest rate on 10-year Treasury notes is expected to remain close to its historical average over the next three decades, reflecting a tug-of-war between rising debt issuance and a slower-growing labor force.



But the risks of disruption are real. "The risk of a fiscal crisis—that is, a situation in which investors lose confidence in the value of the U.S. government's debt—would increase," the report said.



Such an event could "cause interest rates to rise abruptly and other disruptions to occur."



The report added that the U.S.'s fiscal position would be &#8220;more vulnerable to an increase in interest rates, because the larger the debt is, the more an increase in interest rates raises debt-service costs."



The consequences go beyond domestic concerns. If investors fear that inflation could rise, "expectations of higher inflation could erode confidence in the U.S. dollar as the dominant international reserve currency."



Read Now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/03/44513963/us-gdp-growth-upwardly-revised-in-q4-trade-deficit-slightly-narrows-as-auto-exports-soar-in-february">US GDP Growth Upwardly Revised In Q4, Trade Deficit Slightly Narrows As Auto Exports Soar In February</a></li>
</ul>



Image: Shutterstock

Government

Regulations

US Debt To Explode Past World War II Highs, Threatens Growth For Decades: CBO

AppLovin Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>) shares were trading lower Thursday after short seller Muddy Waters issued a critical report on the company. Benzinga has reached out to AppLovin for comment on the <a href="https://www.benzinga.com/trading-ideas/technicals/25/03/44476998/stock-of-the-day-is-applovin-headed-even-higher">Muddy Waters report.</a>



What To Know: Muddy Waters alleged that its e-commerce operations rely heavily on retargeting, provide low incremental value and violate the terms of service of major digital ad platforms.



Muddy Waters stated that approximately 52% of AppLovin's e-commerce conversions come from retargeting, while only 25%-35% of sales are truly incremental. The report also alleged AppLovin extracts proprietary user data from major platforms, including Meta, Google and TikTok, to build artificial user graphs, giving it an unfair advantage in ad auctions.



The short seller further alleged AppLovin's techniques involve persistent identity graphs ("PIGs") to retarget high-value users, making its actions difficult to detect. Additionally, Muddy Waters reported a 23% churn rate among AppLovin's e-commerce beta advertisers, contradicting the company's prior statements of near-zero churn.



If the allegations are accurate, Muddy Waters suggested AppLovin could face the risk of deplatforming, similar to past cases like Cheetah Mobile.



AppLovin has yet to respond to the report.



APP Price Action: Applovin closed Thursday down 20.12% at $261.70, according to<a href="https://pro.benzinga.com/dashboard?new_user=False&amp;backend=google-oauth2"> Benzinga Pro.</a>



<figure class="wp-block-image size-large is-resized"><a href="https://pro.benzinga.com/dashboard?new_user=False&amp;backend=google-oauth2"><img loading="lazy" decoding="async" width="1024" height="559" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/27150945/Screenshot-2025-03-27-at-15.09.14-1024x559.png" alt="" class="wp-image-845722" style="width:442px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/27150945/Screenshot-2025-03-27-at-15.09.14-1024x559.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/27150945/Screenshot-2025-03-27-at-15.09.14-300x164.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/27150945/Screenshot-2025-03-27-at-15.09.14-768x419.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/27150945/Screenshot-2025-03-27-at-15.09.14.png 1096w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/25/03/44520779/stocks-slip-gold-rallies-auto-tariffs-benefit-tesla-rivian-punish-gm-ford-whats-driving-markets-thursday">Stocks Slide As Auto Tariffs Boost Tesla, Rivian And Hit GM, Ford: What&#8217;s Driving Markets Thursday?</a></li>
</ul>



Photo: Shutterstock.

Short Sellers

AppLovin Shares Fall 20% Following Muddy Waters Report On Alleged Platform Violations: What's Going On?

President Donald Trump centered his 2024 election campaign on bringing down prices after a prolonged <a href="https://www.benzinga.com/news/25/02/43962364/president-trump-says-inflation-is-back-claims-its-not-his-fault-but-bidens-i-had-nothing-to-do-with-it">period of inflation</a>. In particular, Trump called for greater domestic drilling, even as the Biden Administration accelerated <a href="https://www.benzinga.com/general/24/05/38962379/bidens-energy-policy-a-death-by-a-thousand-cuts-says-oil-boss-as-trump-seeks-to-court-industry-overw">domestic energy independence</a>. Now that Trump is in office, energy executives are beginning to become impatient with him.



What Happened: The Federal Reserve Bank of Dallas <a href="https://www.dallasfed.org/research/surveys/des/2025/2501#tab-comments">released </a>its quarterly survey of leaders in the oil and gas industry on Wednesday. Those surveyed did not mince words about their frustration with the Trump Administration.



&#8220;The administration&#8217;s chaos is a disaster for the commodity markets. &#8216;Drill, baby, drill&#8217; is nothing short of a myth and populist rallying cry. Tariff policy is impossible for us to predict and doesn&#8217;t have a clear goal. We want more stability,&#8221; one exploration and production executive said.



Feedback seemed to converge around a newfound state of uncertainty with the administration&#8217;s tariff policy and contradictory public statements. Respondents complained of difficulty planning for future years, given the administration&#8217;s changing rhetoric.



&#8220;I have never felt more uncertainty about our business in my entire 40-plus-year career,&#8221; another executive said.



Why it Matters: Trump&#8217;s ultimate tariff plans are unclear. The second-term president has repeatedly gone back and forth on his plans to place tariffs on U.S. allies, <a href="https://www.benzinga.com/politics/25/03/44283923/trump-tariff-delay-on-autos-supported-by-75-of-readers-in-poll-will-pause-lead-to-more-purchases-ahead-of-april">repeatedly pushing back</a> announced tariffs by weeks.



The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) has traded roughly even since Trump took office on Jan. 20, outpacing the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which is down around 6%.



Trump&#8217;s embrace of tariffs is unusual for a Republican president. President Ronald Reagan, whose ideology of free markets and deregulation dominated Republican Party politics for over 30 years, <a href="https://www.benzinga.com/markets/25/03/44269552/ronald-reagan-warned-that-tariffs-destroy-prosperity-trump-is-doubling-them-anyway-and-now-us-tech-giants-like-apple-and-nvidia-are-bracing-for-impact">warned tariffs</a> &#8220;hurt every American worker and consumer.&#8221;



Also Read:



<ul>
<li><a href="https://www.benzinga.com/markets/forex/25/03/44518720/april-2-tariffs-could-trigger-a-us-dollar-rally-to-sell-bank-of-america-economists-say">April 2 Tariffs Could Trigger A US Dollar &#8216;Rally To Sell,&#8217; Bank Of America Economists Say</a></li>
</ul>



Photo: Shutterstock

Politics

Markets

Oil And Gas Executives Rebuke Trump's 'Drill, Baby, Drill' Agenda: 'We Want More Stability'

Shares of Petco Health and Wellness Company Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WOOF#NASDAQ">WOOF</a>) skyrocketed in early trading on Thursday, despite the company reporting <a href="https://www.benzinga.com/news/earnings/25/03/44503412/petco-shares-soar-despite-worse-than-expected-q4-results">disappointing fourth-quarter results</a>.



The company reported its results amid an <a href="https://www.benzinga.com/earnings">exciting earnings season</a>. Here are some key analyst takeaways.



Wedbush On Petco Health and Wellness Company



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5846ee57ee7bf6000154d134/seth-basham">Analyst Seth Basham</a> maintained an Outperform rating, while reducing the price target from $6 to $4.



Petco Health and Wellness Company's comps rose 0.5% in the quarter, slightly below consensus of 0.8%, while decelerating from the previous quarter's 1.8%, Basham said in a note. The company's gross margins expanded by 180 basis points to 38%, beating the consensus of 37.8%, he added.



"The results demonstrate solid progress under new CEO Joel Anderson to return the business model to retail operating excellence and drive structural costs out," the analyst wrote. While management guided to a decline in net sales, their adjusted EBITDA guidance came in at $82 million-$83 million, above consensus of $78.2 million, he stated.



Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.



RBC Capital Markets On Petco Health and Wellness Company



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/61aa12038d115900012d093d/steven-shemesh">Analyst Steven Shemesh</a> reiterated an Outperform rating, while cutting the price target from $6 to $4.



Petco Health and Wellness Company's comps decelerated sequentially, expenses rose, and market share contracted in the quarter, Shemesh said. Management presented "a three-phased approach to reset its economic model and improve profitability," he added.



The first phase of improving its operating model and leadership team is complete, while the second phase of improving margins "through merchandising, sharpening approach to pricing/promotions, optimizing store fleet and overall cost discipline across the business" is currently underway, the analyst wrote. The third phase of testing growth initiatives to drive revenue growth will begin in late 2025, he stated.



Goldman Sachs On Petco Health and Wellness Company



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/58580bcbee7bf60001bcfa29/kate-mcshane">Analyst Kate McShane</a> reaffirmed a Buy rating, while raising the price target from $4.00 to $4.48.



Petco Health and Wellness Company's net revenues declined by 7.3% year-on-year to $1.552 billion, missing the consensus of $1.561 billion, McShane said. The management team "is focused on retail fundamentals to strengthen the foundation for Petco to return to sustainable and profitable growth," he wrote.



The company closed 25 net locations in 2024 and plans to close another 20 to 30 net locations in 2025, "many of which were unprofitable and will help drive better adj EBITDA," the analyst stated. Management guided to adjusted EBITDA profitability growth for 2025, he further stated.



WOOF Price Action: Shares of Petco Health and Wellness Company had risen by 28.6% to $3.14 at the time of publication on Thursday.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/insights/analyst-ratings/25/02/43568843/forecasting-the-future-6-analyst-projections-for-tradeweb-markets"> </a><a href="https://www.benzinga.com/news/earnings/25/03/44491397/dollar-tree-q4-earnings-surpass-estimates-unloads-family-dollar-for-1b">These Analysts Boost Their Forecasts On Chewy Following Earnings Beat</a></li>
</ul>



Photo: Shutterstock

WOOF

Petco Analysts See Turnaround Progress With Higher Margins, Profitability Focus

Dollar Tree Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DLTR#NASDAQ">DLTR</a>) were rising after the company reported better-than-expected earnings for the fourth quarter and reached an <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/03/44505050/dollar-tree-sells-family-dollar-for-1-billion-truly-addition-by-subtraction-analyst-says">agreement to sell its Family Dollar business</a>.



The company reported its results amid an <a href="https://www.benzinga.com/earnings">exciting earnings season</a>. Here are some key analyst takeaways.



<h1 class="wp-block-heading">Truist Securities On Dollar Tree</h1>



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59493ca670ed7a0001097213/scot-ciccarelli">Analyst</a><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/59493ca670ed7a0001097213/scot-ciccarelli"> Scot Ciccarelli</a> reiterated a Buy rating, while lifting the price target from $76 to $84.



Dollar Tree has "solid sales momentum," resulting in fourth-quarter comp of 2.0%, which was "moderately better than our 1.0%E" and was driven by 70 basis points (bps) of transaction growth and 130 bps by ticket, Ciccarelli said in a note. Management projected 3%-5% comp growth in the first quarter and the full year, "which would be higher than the majority of our universe," he added.



While the terms of separation from Family Dollar and the process of transitioning multiple systems and platforms to the cloud could impact earnings in 2025, these expenses will ease over time, the analyst stated. Dollar Tree's recent investments in DT 3.0 should "generate positive results," he further wrote.



Check out <a href="https://www.benzinga.com/analyst-stock-ratings">other analyst stock ratings</a>.



<h1 class="wp-block-heading">Telsey Advisory Group On Dollar Tree</h1>



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5e301e08430dee0001c88c8d/joseph-feldman">Analyst</a><a href="https://www.benzinga.com/analyst-stock-ratings/analyst/5e301e08430dee0001c88c8d/joseph-feldman"> Joseph Feldman</a> maintained a Market Perform rating, while raising the price target from $75 to $82.



The company's decision to sell its Family Dollar business "should help streamline operations and unlock the value of its core Dollar Tree business," Feldman said. "Dollar Tree has successfully attracted higher income households that are trading down to seek value while remaining relevant to its middle-income households by offering alternatives," he wrote.



The company plans to open around 400 new stores, representing unit growth of around 4.5%, while accruing benefits from newness in merchandising, the analyst stated. While Dollar Tree's investments in store associates and technology will increase expenses in 2025, this is "a positive step for the long term," he added.



<h1 class="wp-block-heading">BMO Capital Markets On Dollar Tree</h1>



<a href="https://www.benzinga.com/analyst-stock-ratings/analyst/58d11d39b85e93000188d7a0/kelly-bania">Analyst Kelly Bania</a> reaffirmed a Market Perform rating and price target of $70.



"While the sale of Family Dollar should allow management to move forward with more focus and less capex drain, the outlook now squarely falls on the performance of Dollar Tree, which we believe may have to increasingly rely on price to offset a volatile and uncertain tariff outlook," Bania wrote in a note.



Proceeds from the Family Dollar sale, the elimination of a drain on capital expenses and cash in hand could leave Dollar Tree with around $2 billion in cash when the transaction closes in June, the analyst stated. This would provide "some cushion" for the company's earnings outlook for 2025, she added.



DLTR Price Action: Shares of Dollar Tree had risen by 9.46% to $75.95 at the time of publication on Thursday.



Read More:<a href="https://www.benzinga.com/insights/analyst-ratings/25/02/43568843/forecasting-the-future-6-analyst-projections-for-tradeweb-markets"> </a>  • <a href="https://www.benzinga.com/news/earnings/25/03/44491397/dollar-tree-q4-earnings-surpass-estimates-unloads-family-dollar-for-1b">Dollar Tree To Offload Family Dollar Business For $1 Billion, Anticipates 3% To 5% Standalone Same-Store Sales Growth</a>



Photo: Shutterstock

Earnings Beats

Price Target

Reiteration

Trading Ideas

DLTR

Dollar Tree Rides High On Strong Q4, Streamlined Focus, 'Solid Sales Momentum'

Wall Street dipped slightly on Thursday, with all major indexes edging into the red as investors digested President Donald Trump&#8216;s latest <a href="https://www.benzinga.com/government/regulations/25/03/44517885/trump-slaps-25-tariffs-on-autos-what-it-means-for-your-next-car-purchase">move on auto tariffs.</a>



Late Wednesday, Trump announced a 25% tariff on all auto imports starting next week, with duties on auto parts set to follow in May.



European automakers took a hit, with Mercedes-Benz Group AG (OTCPK: MBGAF) and Porsche Automobile Holding SE (OTCPK: POAHF) sliding 2.5% and 5%, respectively. 



Michigan-based carmakers didn't fare much better. Shares of Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) fell 2.5%, while General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) plunged 6.5%, with the latter marking the worst performance on the S&amp;P 500.



In contrast, U.S. electric vehicle makers rallied. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) rose 2.6%, and Rivian Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) jumped 5%. The rally followed comments from Goldman Sachs analyst Mark Delenay, who pointed to their fully domestic production as a significant advantage <a href="https://www.benzinga.com/25/03/44515578/trumps-25-tariff-set-to-hike-imported-car-prices-up-to-15000-higher-goldman-sachs-warns">under the new tariffs.</a>



Meanwhile, gold extended its rally, climbing over 1% and testing record highs as the U.S. dollar softened. Silver gained 2%, while copper pulled back 2% after a strong run that had lifted it to all-time highs.



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) held firm at $86,875, signaling a cautious tone across the crypto market.



<h3 class="wp-block-heading">Thursday&#8217;s Performance In Major US Indices, ETFs</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>Chg %</td></tr><tr><td>Nasdaq 100</td><td>19,840.57</td><td>-0.4%</td></tr><tr><td>Dow Jones</td><td>42,277.82</td><td>-0.4%</td></tr><tr><td>S&amp;P 500</td><td>5,687.68</td><td>-0.4%</td></tr><tr><td>Russell 2000</td><td>2,060.90</td><td>-0.7%</td></tr></tbody></table><figcaption class="wp-element-caption">Updated at 1:00 p.m. ET</figcaption></figure>



According to&nbsp;<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:



<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.4% lower to $566.80.</li>



<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) fell 0.5% to $422.32.</li>



<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)&nbsp;dropped 0.5% to $482.05.</li>



<li>The&nbsp;iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.6% to $204.29</li>



<li>The&nbsp;Consumer Staples&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) outperformed, up 0.8%; the&nbsp;Energy&nbsp;Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down 1%.</li>
</ul>



<h3 class="wp-block-heading">Thursday&#8217;s Stock Movers</h3>



<ul>
<li>Dollar Tree Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DLTR#NASDAQ">DLTR</a>) rallied over 8% after the company announced that it would sell its Family Dollar business for $1.01 billion to Brigade and Macellum Capital.</li>



<li>AutoZone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AZO#NYSE">AZO</a>) rallied 3.7% to fresh record highs in reaction to import tariffs on automotive parts.</li>



<li>Shares of car rental firms also rallied amid potentially higher margins. Avis Budget Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CAR#NASDAQ">CAR</a>) and Hertz Global Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTZ#NASDAQ">HTZ</a>) both rocketed by about 20%. </li>



<li>GameStop Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) plunged 22% after it announced a private offering of convertible debt to buy Bitcoin.</li>



<li>New Fortress Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFE#NASDAQ">NFE</a>) tumbled more than 10% after the company announced plans to divest its natural gas assets and operations in Jamaica. </li>



<li>Lululemon Athletica Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>) will report its earnings after the close. Shares were up 0.7%. </li>
</ul>



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/forex/25/03/44518720/april-2-tariffs-could-trigger-a-us-dollar-rally-to-sell-bank-of-america-economists-say">April 2 Tariffs Could Trigger A US Dollar &#8216;Rally To Sell,&#8217; Bank Of America Economists Say</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Cryptocurrency

Equities

$BTC

MBGAF

POAHF

RIVN

Stocks Slide As Auto Tariffs Boost Tesla, Rivian And Hit GM, Ford: What's Driving Markets Thursday?

Elon Musk's leadership of the DOGE initiative for the Trump administration has thrown Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) into the center of <a href="https://www.benzinga.com/markets/equities/25/02/43905675/tesla-will-press-charges-against-vandalism-at-superchargers-as-brand-backlash-grows-over-elon-musks-political-ties">a global political storm</a>. 



Once a symbol of innovation, the electric vehicle company now finds itself at the heart of controversy, with protests erupting at dealerships, <a href="https://www.benzinga.com/news/25/03/44463376/tesla-showroom-targeted-in-austin-as-vandalism-escalates">vehicles vandalized</a>, and a massive "TeslaTakedown" day of action planned for Saturday, March 29. 



Musk faces a defining crisis as tensions boil over—can he steer Tesla through the chaos and reclaim control of the brand's future? Wedbush analyst Daniel Ives bets he can. 



On Thursday, Ives reiterated Tesla with an Outperform rating and a <a href="https://www.benzinga.com/quote/TSLA/analyst-ratings" target="_blank" rel="noreferrer noopener">$550 price target</a>.



Also Read: <a href="https://www.benzinga.com/government/regulations/25/03/44330619/tesla-bets-on-low-cost-evs-in-china-after-february-sales-hit-two-year-low" target="_blank" rel="noreferrer noopener">Tesla Bets On Low-Cost EVs in China After February Sales Hit Two-Year Low</a>



Ives expects a soft, rip-the-band-aid-off first-quarter delivery number to hit on April 2. If deliveries fall within the 355,000 to 360,000 range, that&#8217;s down roughly 7%. For context, original Street estimates were over 400,000 to start the quarter and have decreased drastically as the weekly global data has weakened. 



Europe&#8217;s numbers are under significant pressure, with demand softness also seen in the U.S. and China.



Much of this softness is related to customers waiting for Model Y refreshes. Also, Tesla expects to launch a new lower-cost model by the summer. However, anti-Musk and brand issues are clearly at play and significant in this weak first-quarter delivery number.



Ives estimated that 30% of the very soft first-quarter delivery number is related to Musk, the brand, and DOGE. About 70% is more timing and non-brand headwind issues.



&#8220;It has been a tumultuous few months for Musk and Tesla as investors have navigated a very stormy backdrop with Tesla becoming a lightning rod of controversy,&#8221; Ives wrote. Musk&#8217;s DOGE initiative has &#8220;essentially taken on a life of its own&#8221; and turned Tesla into &#8220;a political symbol globally with protests, violence and demonstrations at dealerships and cars keyed,&#8221; he added. 



Ives expects the first quarter to be the &#8220;low point.&#8221; The Street is reviewing the numbers to better understand the delivery trajectory for the rest of the year. 



That depends on whether Musk can balance being Tesla&#8217;s CEO and running DOGE. Ives says investors and employees yearn for Musk&#8217;s leadership at this juncture. 



Musk recently held an all-hands meeting, and the <a href="https://www.benzinga.com/trading-ideas/technicals/25/03/44460563/tesla-jumps-10-on-china-fsd-optimism-tariff-easing-hopes">stock has recovered somewhat</a>. The analyst noted that perhaps investors are starting to sense a potential turning point in this latest Tesla chapter.



Musk also impressed Ives with Tesla&#8217;s long-term strategic vision, which includes autonomous vehicles and robotics.



So far, Musk has guided Tesla towards Austin&#8217;s <a href="https://www.benzinga.com/news/25/03/44458804/elon-musk-10-years-ago-called-autonomous-driving-a-solved-problem-said-we-will-be-there-in-a-few-years">unsupervised full self-driving</a>, or FSD. <a href="https://www.benzinga.com/tech/25/02/43906182/tesla-begins-hiring-for-cybercab-manufacturing-as-elon-musk-led-ev-giant-prepares-for-robotaxi-rollout">The Cybercab also debuted</a>. 



Plus, a lower-cost vehicle launch and more Model 3/Y refreshes, autonomous and robotics/Optimus technology improvements &#8220;set the stage for a new era of growth.&#8221;



&#8220;This continues to be a moment of truth for Musk to navigate this brand tornado crisis moment and get onto the other side of this dark chapter for Tesla with much better days ahead we see for the story,&#8221; Ives said. 



Ives projected first-quarter revenue of $24.05 billion and EPS of 56 cents.



Price Action:&nbsp;Tesla stock is up 2.6% at $279.12 at last check Thursday. It&#8217;s down over 26.4% year-to-date.



Also Read:



<ul>
<li><a href="https://www.benzinga.com/25/03/44283118/tesla-loses-ground-in-us-ev-market-while-rivals-accelerate-ahead-in-january-report" target="_blank" rel="noreferrer noopener">Tesla Loses Ground in US EV Market While Rivals Accelerate Ahead in January: Report</a></li>
</ul>



Image: Shutterstock

Tesla In Turmoil: Analyst Pins Hope On 'New Era' Robotics, Self-Driving

A U.S. dollar bounce in reaction to imminent reciprocal tariff announcements might be the perfect moment to cash out before deeper economic tensions unravel the greenback, <a href="https://www.benzinga.com/topic/expert-ideas">according to Bank of America. </a>



In its latest FX Viewpoint report, the team led by Athanasios Vamvakidis reaffirmed a bearish outlook for the dollar beyond the near term, citing diverging policy paths between the U.S. and Europe.



While the dollar may gain ground following the tariff rollout, Bank of America said the rally would likely be short-lived as stagflation risks mount in the U.S. and Europe accelerates its fiscal and structural stimulus.



&#8220;Most likely, this would be a USD rally to sell,&#8221; the note stated. 



At the time of this writing, the Invesco DB USD Index Bullish Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UUP#NYSE">UUP</a>) is down 3% year-to-date, while the Invesco CurrencyShares Euro Currency Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FXE#NYSE">FXE</a>) has gained 4.5% over the same period.



<h1 class="wp-block-heading">Dollar Set To Gain On Tariffs, Yet Fundamentals Remain Shaky</h1>



&#8220;The USD could still strengthen short-term on high tariffs, but we remain bullish EURUSD for the year on stagflationary U.S. policies and historic EU reforms,&#8221; Vamvakidis said.



Historically, the U.S. dollar's response to tariffs has been mixed. 



While trade barriers can curb imports and boost inflation — supporting the dollar short term — they also threaten growth and trigger risk aversion, which can weigh on the currency over time.



Ahead of the April 2 tariff implementation, Bank of America observed that hedge funds resumed dollar buying after unwinding stretched long positions earlier this year.



According to analysts, the overall USD market position is now neutral.



<h1 class="wp-block-heading">How Could The Fed Respond To Stagflation</h1>



Bank of America maintains a bearish medium-term view on the greenback, driven by what it sees as a stagflationary U.S. policy mix: high tariffs, fiscal tightening and unclear monetary direction from the Federal Reserve.



The market has already priced in four rate cuts this year, up from just 1.5 cuts at the start of 2025. That shift stems from expectations that the Fed will prioritize economic support over reacting to temporary inflation spikes caused by tariffs.



"If the Fed hikes in response to inflation, we would expect the USD to strengthen again," Vamvakidis said. 



Yet, he warned that such strength could be short-lived, as tighter policy may eventually lead to a sharp equity sell-off and economic contraction — bringing the dollar back down.



Bank of America's FX desk says government spending cuts and higher tariffs are defining the policy backdrop, dragging the U.S. closer to stagnating growth combined with elevated inflation.



<h1 class="wp-block-heading">Europe's Comeback: Can The Euro Overtake?</h1>



While the U.S. faces policy uncertainty, Europe is quietly orchestrating its most ambitious economic transformation in over a decade. 



Vamvakidis said the European Union&#8217;s push to spend 800 billion euros on defense and invest in infrastructure is a historic pivot, especially for Germany, which is executing a 12-year fiscal expansion worth at least 22% of GDP.



The fiscal shift marks a break from years of austerity. 



"These are game changers," Bank of America said, adding that the market is underestimating the long-term impact of the EU&#8217;s reform agenda. However, it also warned that the shift would take time to fully materialize. "It is going to be a marathon, not a sprint."



The bank sees the euro-dollar exchange rate rallying to 1.15 levels by December 2025, up nearly 7% from current levels. 



Read Now: 



<ul>
<li><a href="https://www.benzinga.com/25/03/44515578/trumps-25-tariff-set-to-hike-imported-car-prices-up-to-15000-higher-goldman-sachs-warns">Trump&#8217;s 25% Tariff Set To Hike Imported Car Prices Up To $15,000 Higher, Goldman Sachs Warns</a></li>
</ul>



Photo: Shutterstock

Eurozone

Forex

April 2 Tariffs Could Trigger A US Dollar 'Rally To Sell,' Bank Of America Economists Say

Car prices surged during and after the COVID-19 pandemic. Experts are now warning consumers to prepare for additional price hikes due to President Donald Trump's new 25% tariff on imported vehicles and <a href="https://www.benzinga.com/markets/25/03/44509009/over-7-million-vehicles-could-face-the-brunt-of-trumps-auto-tariffs-this-could-drive-the-auto-industry-into-recession">certain auto parts.&nbsp;</a>



What To Know: President Trump announced the tariffs on Tuesday evening, saying<a href="https://www.benzinga.com/25/03/44506345/trump-imposes-25-tariffs-on-auto-imports-says-this-will-continue-to-spur-growth-canada-eu-slam-the-move"> they will </a>&#8220;charge countries for doing business in our country and taking our jobs, taking our wealth,&#8221; and claiming they will &#8220;spur growth like you haven't seen before.&#8221;&nbsp;



Experts predict these tariffs will lead to tighter supply and higher prices by mid-April.&nbsp;



Read Next: <a href="https://www.benzinga.com/news/global/25/03/44494896/us-adds-50-chinese-entities-to-export-restriction-list-curtailing-access-to-nvidia-amd-chips">US Adds 50 Chinese Entities To Export Restriction List Curtailing Access To Nvidia, AMD Chips</a>



&#8220;You&#8217;re going to see price increases,&#8221; Ivan Drury, director of insights at automotive research site Edmunds, told USA Today. &#8220;It&#8217;s such a shotgun approach. Virtually nothing goes unscathed.&#8221; &nbsp;



Price increases are expected across the board, affecting new and used cars, maintenance costs and even insurance premiums as the cost of replacement parts will also go up.&nbsp;



New vehicle prices have gone up approximately 25% <a href="https://www.coxautoinc.com/market-insights/february-2025-atp-report/">since early 2020</a>, according to the Kelley Blue Book, with the average price for a new car just above $48,000 as of February 2025.&nbsp;



According to estimates from the Anderson Economic Group, electric vehicle prices could rise by as much as $12,200 once the tariffs are in effect. Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) EVs could see similar price hikes as the automaker relies heavily on imported batteries and electronics.&nbsp;



Wedbush analyst Dan Ives remained hopeful in a note written Wednesday that the auto tariffs are a negotiation tool and will be revised in the coming weeks.&nbsp;



However, Ives said the tariffs in their current form &#8220;would be a hurricane-like headwind to foreign (and many US) automakers&#8221; and could raise the average car price by $5,000 to $10,000, depending on the make and model.&nbsp;



Why It Matters: While the tariffs might encourage U.S. manufacturing investment in the long term, consumers will face immediate price challenges. Shares of the Big Three U.S. automakers&#8217; stocks are also suffering, with Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), Stellantis N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) and General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) all down sharply on Trump's tariff plans.&nbsp;



Most experts agree that consumers who were considering purchasing a vehicle may now want to move sooner than later as prices are expected to rise.&nbsp;



"If you were thinking about buying in the next couple of years, it might not be a bad idea to make that purchase now if you can afford it," Monica Dwyer, a certified financial planner, <a href="https://www.cnbc.com/2025/03/24/how-much-tariffs-could-drive-up-car-prices.html">told</a> CNBC.&nbsp;



Read More:&nbsp;



<ul>
<li><a href="https://www.benzinga.com/news/global/25/03/44477467/trumps-tariffs-on-buyers-of-venezuelan-oil-could-boost-energy-sector-exxon-mobil-stock">Trump&#8217;s Tariffs On Buyers Of Venezuelan Oil Could Boost Energy Sector, Exxon Mobil Stock&nbsp;</a></li>
</ul>



Image: Shutterstock&nbsp;

Personal Finance

STLA

Trump Slaps 25% Tariffs On Autos: What It Means For Your Next Car Purchase

Economic data released Thursday morning showed a marginal upward revision to U.S. gross domestic product growth for the fourth quarter of 2024, alongside a narrower but still historically high goods <a href="https://www.benzinga.com/news/econ-s">trade deficit for February.</a>



The Bureau of Economic Analysis reported that the U.S. economy expanded at an annualized rate of 2.4% in the fourth quarter of 2024, up from the previously estimated 2.3%. 



While this marks a slight improvement, it also reflects a slowdown from the 3.1% growth rate recorded in the third quarter.



&#8220;The increase in&nbsp;real GDP&nbsp;in the fourth quarter primarily reflected increases in consumer spending and government spending that were partly offset by a decrease in investment. Imports, which are a subtraction in the calculation of GDP, decreased,&#8221; the statement said.



The key industry contributors to economic growth during the quarter included:



<ul>
<li>Real estate and rental and leasing, adding 0.38 percentage points to GDP</li>



<li>Professional, scientific, and technical services, contributing 0.37 percentage points</li>



<li>Health care and social assistance, accounting for 0.34 percentage points</li>
</ul>



On the downside, durable goods manufacturing and wholesale trade subtracted 0.05 percentage points each from the headline figure.



Inflation metrics remained relatively stable. The price index for gross domestic purchases increased by 2.2%, revised down 0.1 percentage point. The Personal Consumption Expenditure price index, a key inflation gauge, rose 2.4%, unchanged from the prior estimate. 



The core PCE, which excludes volatile food and energy prices and is closely monitored by the Federal Reserve, rose 2.6%, slightly lower than the previously estimated 2.7%.



<h3 class="wp-block-heading">Trade Deficit Shrinks Less Than Expected, Auto Exports Rocket Ahead Of Tariffs</h3>



In a separate report, the U.S. Census Bureau noted that the goods trade deficit narrowed to $147.9 billion in February from a record-high $155.6 billion in January. 



The slight improvement fell short of economist expectations, which had forecast a much narrower gap of $134.5 billion.



The data suggests that trade front-loading ahead of potential tariff increases may have persisted during the month.



February exports totaled $178.6 billion, an increase of $7.0 billion from January. Imports eased slightly to $326.5 billion, down $0.6 billion. 



Notable export movements in February included a sharp 12.7% increase in automotive vehicles, which rose to $14.22 billion on a seasonally-adjusted basis. 



Capital goods exports climbed by 4.8%, while consumer goods advanced 2.8% over the month. 



On the import side, automotive vehicles rose 1.2%, consumer goods increased 2.8%, and the &#8220;other goods&#8221; category posted a strong 6.1% monthly gain.



<h3 class="wp-block-heading">U.S. Goods Trade Balance – February 2025</h3>



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><thead><tr><th>Category</th><th>Exports (Feb)</th><th>M/M % Change</th><th>Imports (Feb)</th><th>M/M % Change</th></tr></thead><tbody><tr><td>Foods, Feeds &amp; Beverages</td><td>13.04</td><td>+4.1%</td><td>19.61</td><td>-5.4%</td></tr><tr><td>Industrial Supplies</td><td>62.37</td><td>-2.9%</td><td>85.99</td><td>-0.2%</td></tr><tr><td>Capital Goods</td><td>59.34</td><td>+4.9%</td><td>89.26</td><td>-2.1%</td></tr><tr><td>Automotive Vehicles, etc.</td><td>14.22</td><td>+12.7%</td><td>38.43</td><td>+1.2%</td></tr><tr><td>Consumer Goods</td><td>22.11</td><td>+2.8%</td><td>80.51</td><td>+2.8%</td></tr><tr><td>Other Goods</td><td>7.52</td><td>+6.1%</td><td>12.71</td><td>+6.1%</td></tr><tr><td>Total</td><td>178.60</td><td>+4.1%</td><td>326.51</td><td>-0.2%</td></tr></tbody></table><figcaption class="wp-element-caption">Data: U.S. Census Bureau</figcaption></figure>



<h3 class="wp-block-heading">Labor Market Remains Steady</h3>



Labor market data showed little deviation from expectations. 



According to the Labor Department, initial jobless claims came in at 224,000 for the week, closely aligned with forecasts and the prior week&#8217;s 225,000.



Continuing jobless claims dropped to 1.856 million, outperforming projections of a slight rise to 1.89 million and improving from the previous 1.881 million, signaling resilience in the employment landscape.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/markets/25/03/44509733/gm-ford-tesla-and-other-auto-stocks-slide-in-thursday-pre-market-whats-going-on">GM, Ford, Tesla And Other Auto Stocks Slide In Thursday Pre-Market: What&#8217;s Going On?</a></li>
</ul>



Photo: Shutterstock

US GDP Growth Upwardly Revised In Q4, Trade Deficit Slightly Narrows As Auto Exports Soar In February

Following President Donald Trump&#8217;s latest tariff move, U.S. consumers could be expected to spend up to $15,000 more on an imported vehicle. This move could sharply rattle auto demand and reshape the competitive dynamics of <a href="https://www.benzinga.com/markets/25/03/44509733/gm-ford-tesla-and-other-auto-stocks-slide-in-thursday-pre-market-whats-going-on">the U.S. automotive market.</a>



In a note shared Thursday, Goldman Sachs analyst Mark Delaney, CFA, said the new 25% tariff on imported autos and certain parts, effective April 3, could raise vehicle prices by $5,000 to $15,000, depending on the model and country of origin.



<h3 class="wp-block-heading">How Much Could US Auto Prices Rise Amid Tariffs?</h3>



According to Goldman Sachs, the price increase assumes tariffs are applied to vehicles ranging from $20,000 to $60,000 — a bracket that covers a large portion of the U.S. auto market.



Delaney said that U.S.-assembled vehicles wouldn't be spared either. With roughly 50% of their components sourced from abroad, tariffs on foreign-made parts could raise the cost of a U.S.-built vehicle by an additional $3,000 to $8,000, based on similar assumptions.



While the White House executive order carves out an exemption for USMCA-compliant content — meaning vehicles and parts meeting certain thresholds of North American origin will only face tariffs on their non-U.S. share — the impact is still expected to be widespread.



Read now: <a href="https://www.benzinga.com/25/03/44506345/trump-imposes-25-tariffs-on-auto-imports-says-this-will-continue-to-spur-growth-canada-eu-slam-the-move">Trump Imposes 25% Tariffs On Auto Imports, Says &#8216;This Will Continue To Spur Growth&#8217; — Canada, EU Slam The Move</a>



<h3 class="wp-block-heading">Goldman Sachs Sees Earnings Impact For US Automakers</h3>



Of the 16 million light vehicles sold in the U.S. in 2024, only 8 million were assembled domestically, per the White House fact sheet. Further, even those U.S.-built cars contain a significant chunk of foreign content, intensifying the price impact.



Goldman Sachs estimates that a low- to mid-single-digit increase in car prices could lead to a low-single to low-double-digit drop in auto sales, all else being equal. 



That's based on historical elasticity patterns between price and demand in the mainstream vehicle market.



That spells potential trouble for automakers and suppliers alike. 



"We continue to believe that tariffs are a downside risk to earnings for both original equipment manufacturers and suppliers," Delaney said. 



<h3 class="wp-block-heading">Winners And Losers: Will Tesla And Rivian Gain?</h3>



The blow may not be evenly distributed. Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Rivian Automotive Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>), which manufacture all their U.S. market vehicles domestically, may emerge relatively unscathed.



On the other hand, Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) and General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) may face a tougher balancing act.



Goldman's estimates show that Ford sources 80% of its U.S. vehicle content domestically, while GM comes in at about 60%-70%. Both companies also export some U.S.-made vehicles, adding complexity to their tariff exposure.



Still, automakers aren't without tools. GM has previously said it could offset 30% to 50% of tariff-related costs through price hikes, supply chain adjustments or production shifts.



"There are some scenarios where the U.S. OEMs can fully offset tariffs," Delaney said, "but also scenarios where OEMs see material negative earnings per share revisions."



Read now: 



<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/25/03/44513963/us-gdp-growth-upwardly-revised-in-q4-trade-deficit-slightly-narrows-as-auto-exports-soar-in-february">US GDP Growth Upwardly Revised In Q4, Trade Deficit Slightly Narrows As Auto Exports Soar In February</a></li>
</ul>



Photo: Shutterstock

Trump's 25% Tariff Set To Hike Imported Car Prices Up To $15,000 Higher, Goldman Sachs Warns

ChatGPT parent OpenAI&nbsp;<a target="_blank" href="https://www.benzinga.com/topic/openai" rel="noreferrer noopener">inched closer to</a> finalizing a $40 billion funding round as of Thursday, led by&nbsp;SoftBank Group Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) and investors&nbsp;Magnetar Capital,&nbsp;Coatue Management,&nbsp;Founders Fund, and&nbsp;Altimeter Capital Management.



Magnetar Capital could contribute up to $1 billion, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-03-26/openai-close-to-finalizing-its-40-billion-softbank-led-funding?sref=TBDibEcD" rel="noreferrer noopener">reported</a>, citing unnamed sources familiar with the matter.



The deal could value the company&nbsp;at $300 billion compared to its&nbsp;previous valuation of $157 billion in the October funding round.



Also Read: <a target="_blank" href="https://www.benzinga.com/media/25/03/44163030/chatgpt-parent-openais-specialized-ai-agents-could-cost-up-to-20-thousand-per-month-report" rel="noreferrer noopener">ChatGPT Parent OpenAI&#8217;s Specialized AI Agents Could Cost Up To $20 Thousand Per Month: report</a>



SoftBank will commit an initial $7.5 billion to the company and $2.5 billion from an investor syndicate. According to the report, the second tranche of $30 billion will include $22.5 billion from SoftBank and $7.5 billion from a syndicate.



SoftBank&nbsp;is <a target="_blank" href="https://www.benzinga.com/25/01/43327823/softbank-eyes-historic-25-billion-investment-in-openai-poised-to-dethrone-microsoft-as-chatgpt-parents-biggest-investor" rel="noreferrer noopener">reportedly negotiating an</a> investment of $15 billion—$25 billion in&nbsp;OpenAI, making it the largest investor in the&nbsp;ChatGPT&nbsp;creator. This would surpass&nbsp;Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), which has&nbsp;invested nearly $14 billion.



Reportedly, OpenAI and Microsoft negotiated to convert Microsoft&#8217;s $14 billion investment in OpenAI into equity in the AI company.



<a target="_blank" href="https://www.benzinga.com/news/24/10/41407196/openais-for-profit-structure-adds-valuation-complexity-to-microsoft-and-other-equity-investors-repor" rel="noreferrer noopener">Reports also indicated</a> that OpenAI and Microsoft are facing tensions in their partnership due to financial strain and rising expenses at OpenAI. OpenAI asked Microsoft for additional funding and computing power, but Microsoft has been hesitant since OpenAI&#8217;s leadership changes. OpenAI&#8217;s projected computing expenses could reach $37.5 billion annually by 2029.



Separately, SoftBank has committed billions to the Stargate Project, a Texas-based joint venture with partners including OpenAI,&nbsp;Oracle Corp, and MGX.



OpenAI expects to more than triple its revenue this year to $12.7 billion. In 2024, it generated $3.7 billion in revenue. OpenAI expects sales to proliferate to $29.4 billion in 2026.



Still, OpenAI doesn&#8217;t expect to be cash-flow positive until 2029, when it projects revenue to top $125 billion as it grapples with AI development costs.



As of February, SoftBank committed&nbsp;$40 billion in OpenAI at a $260 billion valuation, CNBC <a target="_blank" href="https://www.cnbc.com/2025/03/26/openai-expects-revenue-will-triple-to-12point7-billion-this-year-sources-say.html" rel="noreferrer noopener">reports</a>. It expects to earmark part of the funding to OpenAI&#8217;s commitment to Stargate.



Also Read:



<ul>
<li><a href="https://www.benzinga.com/media/25/03/44327422/softbank-to-build-676-million-ai-data-center-in-japan-linked-to-openai-partnership" target="_blank" rel="noreferrer noopener">SoftBank To Build $676 Million AI Data Center In Japan, Linked To OpenAI Partnership</a></li>
</ul>



Image via Shutterstock

Media

MSFT

SFTBF

SFTBY

SoftBank May Want To Outdo Microsoft With $40 Billion Investment in OpenAI's Latest Funding Round

The stocks of automakers, General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>), Ford Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), Stellantis NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>) and Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) declined 5.79%, 3.69%, 2.58%, and 1.59%, respectively during the pre-market trading session on Thursday.



What Happened: On Wednesday, a 25% tariff was imposed by President Donald Trump on foreign-made automobiles, citing that automotive imports still pose a threat to the country&#8217;s industrial base and national security. &nbsp;



Following the announcement, the Nasdaq 100 fell into the correction zone once again, dropping 10.38% from its 52-week high. The S&amp;P 500 index was down 7.08% from its record levels, while the Dow Jones was 5.81% lower from its 52-week high. Auto stocks were the most impacted and the sell-off continues in today&#8217;s pre-market trading. 



During a press conference, Trump, when questioned about the <a href="https://www.benzinga.com/25/03/44508744/donald-trump-reacts-to-selloff-following-auto-tariffs-that-can-take-care-of-itself-in-one-day-two-days-or-one-week">market decline</a> following a three-day rise, emphasized that his focus was on job creation, not the stock market. &#8220;That&nbsp;can take care of itself&nbsp;in one day, two days,&nbsp;or one week,&#8221; he stated. &nbsp;&#8220;That&nbsp;can take care of itself&nbsp;in one day, two days,&nbsp;or one week,&#8221; he stated.



The Trump administration contends that automakers have surplus capacity for domestic production and were aware of possible tariffs.



SEE ALSO:<a href="https://www.benzinga.com/news/25/03/44503300/discord-prepares-for-potential-ipo-with-goldman-sachs-jpmorgan-bloomberg"> Discord Prepares For Potential IPO With Goldman Sachs, JPMorgan: Report</a>



Why It Matters: According to the Associated Press, the tariffs, expected to generate $100 billion per year, will take effect on April 3. Trump maintains that tariffs will be instrumental in bringing back auto manufacturing into the U.S. However, experts opine that it will take years to witness this positive impact, as it takes more than 3 years to set up an auto plant and shift production.



The latest auto tariffs have rattled the auto sector. CNBC&#8217;s auto sector expert Phil LeBeau stated that <a href="https://www.benzinga.com/markets/25/03/44509009/over-7-million-vehicles-could-face-the-brunt-of-trumps-auto-tariffs-this-could-drive-the-auto-industry-into-recession">more than 7 million </a>vehicles could be impacted by these tariffs and it could drive the auto sector into recession. Even Tesla CEO Elon Musk accepted that this tariff will have a significant impact on Tesla despite domestic manufacturing, because some parts are still imported from other countries, particularly China.



Weighing in on the possibilities of car price hikes, Wedbush analysts told Reuters, &#8220;In our view these initial tariffs (if they hold in their current form) would be a hurricane-like headwind to foreign (and many U.S.) automakers and ultimately push the average price of cars up $5,000 to $10,000.&#8221;



<ul>
<li>READ MORE: <a href="https://www.benzinga.com/25/03/44342459/4-auto-stocks-set-to-benefit-from-trumps-tariffs">4 Auto Stocks Set To Benefit From Trump&#8217;s Tariffs</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

GM, Ford, Tesla And Other Auto Stocks Slide In Thursday Pre-Market: What's Going On?

As GameStop Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) has announced a convertible bond offering to acquire Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>), mirroring Strategy Inc.&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STR#NASDAQ">STR</a>) plan, experts explain why investors would buy a bond with a 0% coupon.



What Happened: After announcing the change in its investment policy to include Bitcoin as a treasury reserve asset, Ryan Cohen&#8216;s GameStop announced a proposed private offering of $1.3 billion of 0% convertible senior notes.



These notes are general unsecured obligations of GameStop, which will not bear regular interest, and the principal amount of the notes will not accrete.



Institutional investors usually invest in convertible bonds because they&#8217;re a hybrid investment instrument that can be exchanged for equity in the company at a later date. The conversion feature of these notes eventually helps the debt holders to participate in the equity upside on conversion.



But apart from that, according to Tom Lee, the CIO at Fundstrat Capital, these bonds also provide debt investors an <a href="https://www.benzinga.com/25/03/44375602/michael-saylors-mstr-provides-bitcoin-exposure-to-bondholders-with-its-novel-strategy-tom-lee-says-its-helping-bond-managers-outperform-the-market">exposure to Bitcoin</a>, which he described as a &#8220;novel strategy,&#8221; in the case of erstwhile MicroStrategy, led by Michael Saylor.



&#8220;You might wonder why are bondholders buying these bonds? They are offering for the first time, the ability for someone to put a $1 billion worth in a bond world to own a bond that has exposure to bitcoin,&#8221; Lee said. 



See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/03/44491710/gamestop-cash-pile-expands-3-4-in-q4-amid-bitcoin-buying-report-analyst-says-stock-could-drop-if-valued-as-a-btc-treasury-like-michael-saylors-mstr">GameStop Cash Pile Expands 3.4% In Q4 Amid Bitcoin Buying Report: Analyst Says Stock Could Drop If Valued As A BTC Treasury Like Michael Saylor&#8217;s MSTR</a>



Why It Matters: Also, the risk faced by such bonds usually includes refinancing of the debt, explains Bryan Goldstein, the client advisor at Matthews South.



&#8220;The risk is similar to any debt repayment where there is a fixed amount that needs to be repaid, and if the company doesn&#8217;t have cash to repay the bonds they need to refinance &#8211; if equity is one of the options, it would require more shares to be issued,&#8221; Goldstein said.



Furthermore, since the bonds are general unsecured obligations, they aren&#8217;t pegged to Bitcoin value directly.



&#8220;There are generally no financial/maintenance covenants in unsecured convertible bonds that could put the company at risk. The main risk again is on the refinancing at maturity that if the company has assets in bitcoin that need to be liquidated at a lower point, then it stresses the financials of the company,&#8221; added Goldstein.



&#8220;Clearly, the market price of the stock and thus the converts will move with the price of Bitcoin. But if Bitcoin fell to $1,000 tomorrow, it would not trigger anything with the bonds. They would still have the same maturity schedule,&#8221; said Eli Pars, the co-chief investment officer at Calamos Investments.



Price Action: GameStop rose 11.65% on Wednesday, and it was down 7.40% in premarket on Thursday. The stock has fallen 7.50% on a year-to-date basis, whereas it is 115.34% higher over a year.



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were mixed in premarket on Thursday. The SPY was up 0.053% to $568.89, while the QQQ declined 0.060% to $484.09, according to<a href="https://pro.benzinga.com/dashboard"> Benzinga Pro</a> data.



Benzinga's Edge Rankings suggest that GME is experiencing a negative price trend for both short and medium-term periods. While its momentum was ranked at the 92.93th percentile, growth and value rankings were notably weak, detailed <a href="https://www.benzinga.com/report/GME">information is available here</a>.



<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/report/GME"><img loading="lazy" decoding="async" width="808" height="142" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/27065204/GME-edge-1.png" alt="" class="wp-image-844509" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/27065204/GME-edge-1.png 808w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/27065204/GME-edge-1-300x53.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/03/27065204/GME-edge-1-768x135.png 768w" sizes="(max-width: 808px) 100vw, 808px" /></a></figure>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/03/44508744/donald-trump-reacts-to-selloff-following-auto-tariffs-that-can-take-care-of-itself-in-one-day-two-days-or-one-week">Trump Reacts To Selloff Following Auto Tariffs: &#8216;That Can Take Care Of Itself In One Day, Two Days, Or One Week&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

Market Summary

Bonds

Futures

GameStop Follows MSTR's Footsteps: Why Will Investors Buy Convertible Notes With No Interest?

U.S. stock futures were swinging between gains and losses on Thursday after snapping a three-day winning streak on Wednesday. Futures of major benchmark indices were mixed in premarket trading.



Aiming to boost U.S. manufacturing and reduce reliance on global suppliers, new auto tariffs were introduced on Wednesday, which will go into effect from April 3.



Projected to generate $100 billion annually, President Donald Trump stated the policy &#8220;will continue to spur growth.&#8221; It&#8217;s noted that within the <a href="https://www.benzinga.com/25/03/44506345/trump-imposes-25-tariffs-on-auto-imports-says-this-will-continue-to-spur-growth-canada-eu-slam-the-move">USMCA agreement</a>, the 25% tariff only impacts the non-U.S. content of auto goods from Canada and Mexico. 



With the 10-year Treasury yield at 4.38% and the 2-year at 4.02%, the CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a> shows markets pricing in a 90.4% likelihood of the Federal Reserve maintaining current interest rates through its May meeting. 



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>-0.01%</td></tr><tr><td>S&amp;P 500</td><td>0.07%</td></tr><tr><td>Dow Jones</td><td>0.17%</td></tr><tr><td>Russell 2000</td><td>0.31%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, were mixed in premarket on Thursday. The SPY was up 0.10% to $569.18, while the QQQ declined 0.025% to $484.26, according to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data.



Cues From Last Session:



Most sectors on the S&amp;P 500 closed lower on Wednesday, with Consumer Discretionary, Communication Services, and Information Technology stocks recording the biggest losses.



However, Utilities and Consumer Staples bucked the overall market trend, closing the session higher.



Dragging the tech-heavy index Nasdaq down were major stocks like Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), which fell over 2%, while Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ: GOOGL declined more than 3%.



On the economic data front, U.S. new orders for manufactured durable goods rose 0.9% month over month in February to $289.3 billion.



The Dow Jones index fell 133 points or 0.31% on Wednesday to 42,454.79, whereas the S&amp;P 500 index was down 1.12% at 5,712.20. Nasdaq Composite notched a 2.04% drop to end at 17,899.02, and the small-cap gauge, Russell 2000, declined 1.03% to 2,073.83.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>-2.04%</td><td>17,899.02</td></tr><tr><td>S&amp;P 500</td><td>-1.12%</td><td>5,712.20</td></tr><tr><td>Dow Jones</td><td>-0.31%</td><td>42,454.79</td></tr><tr><td>Russell 2000</td><td>-1.03%</td><td>2,073.83</td></tr></tbody></table></figure>



Insights From Analysts:



As Trump introduced auto tariffs and the date for implementing &#8220;reciprocal tariffs&#8221; near, Louis Navellier, the founder and CIO of Navellier &amp; Associates, said, &#8220;Expect volatility. Buckle up.&#8221;



&#8220;We&#8217;re a week away from Trump&#8217;s &#8216;Liberation Day,&#8217; when he plans to implement reciprocal tariffs, focusing on trading partners with significant trade imbalances with the U.S. It&#8217;s a risk factor that investors have never faced and may explain why the VIX is starting to rise again after falling since the March 10th high,&#8221; he added.



Scott Wren, senior global market strategist at Wells Fargo, believes that although tariffs come with anticipated economic costs, actions by both companies and consumers can substantially lessen their negative impact.



&#8220;Let&#8217;s be clear: We expect tariffs to have some economic cost," Wren acknowledged. He pointed out that price hikes implemented by some U.S. firms due to tariffs have often been lower than the tariff percentage itself, noting that strong corporate profitability provides "some room to absorb a portion of the price increases."



Steps toward mitigation are already being taken, Wren indicated. "Keep in mind that some companies have been diversifying supply chains since the early days of the pandemic or even prior to that," he elaborated.



Consumer behavior also factors in. "Consumers can also blunt some of the effect of potential tariffs… for many products, there are substitution possibilities," Wren remarked, mentioning shifts toward domestic products as an example. He assesses that "these reactions will blunt and dilute much of the negative tariff impact."



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures</a> 



Upcoming Economic Data



Here&#8217;s what investors will keep an eye on Thursday:



<ul>
<li>Initial jobless claims data, second revision of GDP, advanced U.S. trade balance in goods, and advanced wholesale inventories data are to be released at 8:30 a.m. ET.</li>
</ul>



<ul>
<li>Pending home sales data is set to be released at 10 a.m. ET.</li>
</ul>



<ul>
<li>Richmond Fed President Tom Barkin is set to speak at 4:30 p.m.</li>
</ul>



Stocks In Focus:



<ul>
<li>TD Synnex Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNX#NYSE">SNX</a>) was up 0.27% in premarket on Thursday ahead of its earnings before the opening bell. Analysts expect quarterly earnings of $2.91 per share on revenue of $14.79 billion.</li>
</ul>



<ul>
<li>Winnebago Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WGO#NYSE">WGO</a>) was down 0.029% as Wall Street expects it to report earnings of 13 cents per share on revenue of $616.66 million before the opening bell.</li>
</ul>



<ul>
<li>Lululemon Athletica Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>) slipped 0.38% ahead of its earnings after the closing bell. Analysts expect quarterly earnings of $5.85 per share on revenue of $3.57 billion.</li>
</ul>



<ul>
<li>Steelcase Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCS#NYSE">SCS</a>) jumped 11.79% after reporting better-than-expected fourth-quarter financial results and issuing first-quarter guidance above estimates.</li>
</ul>



<ul>
<li>GameStop Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GME#NYSE">GME</a>) dropped 6.42% after it announced the issuance of $1.3 billion worth of its 0.00% convertible senior notes due 2030 in a private offering to institutional investors to acquire Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>).</li>
</ul>



<ul>
<li>American Rebel Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AREB#NASDAQ">AREB</a>) slumped 24.63% as the company announced that it will implement a 1-for-25 reverse stock split on March 31, 2025, reducing shares from ~10.6 million to ~423 thousand.</li>
</ul>



<ul>
<li>SAGE Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAGE#NASDAQ">SAGE</a>) declined 2.91% after it announced that Jacqui Cartin will replace Jonathan Howell as CFO in January 2026.</li>
</ul>



<ul>
<li>Aura Biosciences Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AURA#NASDAQ">AURA</a>) rose 9.68% as it highlighted progress with Bel-Sar. Bel-sar showed positive Phase 1 NMIBC data at the EAU Congress.</li>
</ul>



<ul>
<li>Soleno Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SLNO#NASDAQ">SLNO</a>) surged 36.82% after it received FDA approval for VYKAT XR (diazoxide choline), the first treatment for hyperphagia in Prader-Willi syndrome for patients aged four and older.</li>
</ul>



Commodities, Gold, And Global Equity Markets:



Crude oil futures were trading lower in the early New York session by 0.39% to hover around $69.38 per barrel.



Gold Spot US Dollar advanced 0.59% to hover around $3,036.97 per ounce. Its previous record high stood at $3,057.51 per ounce.



Asian markets closed on a mixed note on Thursday. China&#8217;s CSI 300, India's S&amp;P BSE Sensex, and Hong Kong's Hang Seng index rose in trade. Whereas, South Korea's Kospi, Japan's Nikkei 225, and Australia's ASX 200 index declined. European markets were lower in early trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/03/44508744/donald-trump-reacts-to-selloff-following-auto-tariffs-that-can-take-care-of-itself-in-one-day-two-days-or-one-week">Trump Reacts To Selloff Following Auto Tariffs: &#8216;That Can Take Care Of Itself In One Day, Two Days, Or One Week&#8217;</a></li>
</ul>



Photo courtesy: Shutterstock

Asia

Earnings Misses

Macro Notification

Broad U.S. Equity ETFs

Treasuries

Federal Reserve

Pre-Market Outlook

ETFs

General

AMZN

AREB

AURA

GOOG

SAGE

SLNO

US Stocks Likely To Open Mixed: 'Expect Volatility. Buckle Up,' Says Expert

The CNN Money Fear and Greed index showed a decline in the overall market sentiment, while the index remained in the &#8220;Fear&#8221; zone on Wednesday.



U.S. stocks settled lower on Wednesday, with the Nasdaq Composite falling around 2% during the session.



Major tech stocks, including Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) and Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), fell more than 2% on Wednesday, while Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) declined over 3% during the session.



On the economic data front, February saw U.S. new orders for manufactured durable goods rise 0.9% month over month to $289.3 billion.



Most sectors on the S&amp;P 500 closed on a negative note, with consumer discretionary, communication services, and information technology stocks recording the biggest losses on Wednesday. However, utilities and consumer staples stocks bucked the overall market trend, closing the session higher.



The Dow Jones closed lower by around 133 points to 42,454.79 on Wednesday. The S&amp;P 500 dipped 1.12% to 5,712.20, while the Nasdaq Composite tumbled 2.04% to 17,899.02 during Wednesday's session.



Investors are awaiting earnings results from TD SYNNEX Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNX#NYSE">SNX</a>), Winnebago Industries Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WGO#NYSE">WGO</a>), and Lululemon Athletica Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LULU#NASDAQ">LULU</a>) today.



What is the CNN Business Fear &amp; Greed Index?



At a current reading of 28.6, the index remained in the &#8220;Fear&#8221; zone on Wednesday, versus a prior reading of 30.5.



The Fear &amp; Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/25/03/44496478/top-2-industrials-stocks-that-may-crash-in-q1">Top 2 Industrials Stocks That May Crash In Q1</a></li>
</ul>



Photo courtesy: Shutterstock

GOOGL

Nasdaq Tumbles 2% Amid Decline In Alphabet, Amazon: Investor Sentiment Declines, Greed Index Remains In 'Fear' Zone

President Donald Trump declared on Wednesday the introduction of a 25% tariff on auto imports. This decision aims to stimulate domestic production but could financially strain automakers dependent on international supply chains.



What Happened: The tariffs, poised to generate $100 billion annually, are set to be enforced starting April 3, <a href="https://apnews.com/article/autos-tariffs-trump-tax-imports-ford-gm-e53823ef7bbb7b3c46d11eca90aaa638?user_email=97d05b29432d778bbb1ffb8f16f2769451bf1d6125981f71ceccbe18ec8d01d8&amp;utm_medium=APNews_Alerts&amp;utm_source=Sailthru_AP&amp;utm_campaign=NewsAlert_Mar26_2025_05:37PM&amp;utm_term=AP%20News%20Alerts#">reported</a> the Associated Press. The administration anticipates that the increased costs will incentivize the opening of more factories within the U.S., thereby reducing dependence on global supply chains. However, American automakers, who rely on components sourced globally, might face heightened expenses and reduced sales.



&#8220;This will continue to spur growth,&#8221; said Trump on his decision, according to the Press.



Under the USMCA trade pact covering the United States, Mexico, and Canada, the 25% tariffs would only affect non-U.S. content in autos and parts.



The administration argues that U.S. automakers have enough excess capacity to increase domestic production and bypass the tariffs. An official also pointed out that automakers have been aware of the potential tariffs since Trump&#8217;s campaign.



Shares of General Motors Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) dropped by over 3% on Wednesday, while Ford Motor Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) experienced a slight uptick. Stellantis N.V. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>), the parent company of Jeep and Chrysler, saw its stock value decline by nearly 3.6%.



International leaders, including Canadian Prime Minister Mark Carney and European Commission President Ursula von der Leyen, have criticized the tariffs, suggesting a potential escalation into a global trade conflict. Trump also proposed a tax incentive for American-made vehicles, allowing buyers to deduct auto loan interest from federal taxes.



Carney said, &#8220;This is a very direct attack.&#8221; The Prime Minister vowed to defend Canadian workers and companies. He said, &#8220;We will defend our country.&#8221;



See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/03/44505050/dollar-tree-sells-family-dollar-for-1-billion-truly-addition-by-subtraction-analyst-says">Dollar Tree Sells Family Dollar For $1 Billion: &#8216;Truly Addition By Subtraction,&#8217; Analyst Says</a>



Why It Matters: The announcement follows&nbsp;<a href="https://in.benzinga.com/25/03/44494096/trump-hints-at-more-lenient-stance-on-upcoming-april-tariffs-with-just-minor-considerations-i-dont-want-to-have-too-many-exceptions">Trump&#8217;s earlier hints</a>&nbsp;that the tariffs might be less stringent than initially anticipated, offering some relief to investors. During a Newsmax interview, Trump suggested a more lenient approach, acknowledging minimal exceptions.



Earlier, Trump had indicated that while&nbsp;<a href="https://in.benzinga.com/news/global/25/03/44468587/trump-announces-auto-tariffs-are-imminent-but-some-countries-might-receive-exemptions">tariffs on automobiles were imminent</a>, not all would be enforced by April 2. He mentioned potential exemptions for certain countries, though specifics were not provided.



Trump&#8217;s tariffs on steel, aluminum, and auto imports <a href="https://in.benzinga.com/25/03/44342459/4-auto-stocks-set-to-benefit-from-trumps-tariffs">hurt foreign-part-dependent automakers</a> but benefit companies with strong domestic production and supply chains. Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), Toyota Motor Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), BYD Company Limited (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>), and GM are poised to gain, while automakers reliant on cross-border supply chains face higher costs. Used car dealers like AutoNation, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AN#NYSE">AN</a>) and CarMax, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KMX#NASDAQ">KMX</a>) may also benefit as new car prices rise.



Image via Shutterstock



Check out more of Benzinga&#8217;s Future Of Mobility coverage by <a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/politics/25/03/44505859/trumps-approval-rating-hits-new-low-since-inauguration-americans-unhappy-with-presidents-handling-of-economy">Trump&#8217;s Approval Rating Hits New Low Since Inauguration: Americans Unhappy With President&#8217;s Handling Of Economy</a></li>
</ul>



This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/author/shivdeep-dhaliwal" target="_blank" rel="noreferrer noopener">Shivdeep Dhaliwal</a>

BYDDY

Trump Imposes 25% Tariffs On Auto Imports, Says 'This Will Continue To Spur Growth' — Canada, EU Slam The Move

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