US OPEN: Markets react to Trump's Tariffs on foreign-made Vehicles

• US Automakers Slide on Trump's 25% Import Tariff

• AMD Shares Drop After Jefferies Downgrade

• GameStop Tumbles on $1.3 Billion Convertible Note Offering

• Robinhood Unveils New Products at Annual Gold Event

Major US index futures are showing declines. The S&P 500 (US500) is down -0.28% to 5721.5, while the Dow (US30) is down -0.34% to 42466. Nasdaq futures (US100) are showing a decline of -0.31% to 19955.97, and the Russell 2000 (US2000) is down -0.40% to 2071.5. The VIX volatility index is up +2.11% to 19.38, indicating increased market uncertainty.

European markets are broadly negative, with most indices in the red. Austria's AUT20 is down -1.19% to 4075, while Germany's DAX (DE40) has fallen -0.81% to 22759.3. The UK's FTSE 100 (UK100) index has declined -0.63% to 8621.0, and Poland's WIG 20 (W20) is down -0.58% to 2751.6. The Euro Stoxx 50 (EU50) has dropped -0.51% to 5302.6, and Switzerland's SMI (SUI20) is down -0.49% to 12668. France's CAC 40 (FRA40) has declined -0.30% to 7985.2, the Netherlands' NED25 has fallen -0.43% to 912.90, and Italy's FTSE MIB (ITA40) is down -0.17% to 38115. Spain's IBEX 35 (SPA35) is the only European index showing gains, up +0.16% to 13368.

S&P 500 Sectors Show Mixed Performance. Source: Bloomberg Financial LP

Current volatility observed on Wall Street. Source: xStation 

The Nasdaq 100, represented by US100, has broken below the 61.8% Fibonacci retracement level, indicating that bulls failed to hold this support zone. Bears are now likely to target the 78.6% Fibonacci retracement level. To resume the uptrend, bulls must quickly reclaim the 20,340 level followed by the 200-day SMA. The RSI has broken below 48.5, a level that previously acted as resistance, while forming a bullish divergence with a higher high. Meanwhile, the MACD is starting to narrow, signaling potential caution. Source: xStation 

Market News

• Shares of US automakers fell after President Donald Trump announced a 25% tariff on auto imports starting next week. General Motors led declines (-6%), followed by Stellantis (-1.6%) and Ford (-0.7%), while Tesla gained slightly (+0.5%). Analysts at Bernstein called the tariffs "a profound disruption" to the global automotive model, with Wedbush estimating vehicle prices could increase by $5,000-$10,000. Companies with US-based final assembly like Tesla, Rivian, and Lucid should be exempt, while GM faces particular risk with nearly 50% of its 2024 unit sales coming from models imported from Mexico, Canada, and South Korea.

• Advanced Micro Devices fell 3.1% after Jefferies downgraded the chipmaker to hold from buy, citing "limited traction in AI" and Nvidia's significant performance advantage. Analyst Blayne Curtis warned that AMD has "considerable ground to cover before their products can compete" in AI, with Nvidia likely to widen its technological edge further. The stock is now down almost 50% from its peak a year ago, with Jefferies cutting its price target from $135 to $120, well below the $145 average among analysts tracked by Bloomberg.

• GameStop shares plunged up to 8.5% following the announcement of a planned $1.3 billion offering of 0.00% convertible senior notes due in 2030. The company intends to use proceeds for "general corporate purposes, including the buying of Bitcoin." Wedbush analyst Michael Pachter expressed skepticism, expecting the offering to "fall flat" while questioning why investors would "pay more than twice cash value for GameStop to potentially convert it into Bitcoin."

• Morgan Stanley highlighted Robinhood's announcement of three new services: Robinhood Strategies (a customizable advisory program), Robinhood Banking (a family-focused offering with peer-to-peer transfers), and Robinhood Cortex (an AI-powered trading tool). The bank noted "upside surprise" on several features and reiterated an Overweight rating with a $90 price target, arguing the new products support revenue diversification and broader customer appeal.

• Jefferies shares declined 4.8% after reporting earnings below estimates. Morgan Stanley lowered its price target to $75 from $81, with analysts noting "Jefferies missed revenues across the board" and expecting shares to underperform. The earnings miss "provides near-term fuel to market concerns around the sustainability of an investment banking rebound," with Bloomberg Intelligence warning of "potential risk of a delayed rebound" threatening consensus expectations for 10-15% revenue growth in 2025-26.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP