Stock Market Today: Stocks bounce back on Trump auto tariff exemption

Updated 4:45 PM EST by Rob Lenihan

Stocks ended higher in Wednesday after President Donald Trump announced a one-month auto tariff exemption on Canada and Mexico.

The Dow Jones Industrial Average surged 485.60 points, or 1.14%, to finish the session at 43,006.59, after tumbling more than 1,300 points over the last two sessions, while the S&P 500 gained 1.12% to close at 5,842.63. The tech-heavy Nasdaq rose 1.46% to end the day 18,552.73.

Payroll-processing group ADP said around 77,000 jobs were created in the private sector last month, the lowest tally since July, a sharp pullback from the upwardly-revised total of 186,000 in January.

 Economists had expected ADP's National Employment Report to show gains of around 141,000 as hiring slowed into the middle of the first quarter.

"ADP reported solid job growth in January despite a big drag on economic activity from the LA wildfires and bad winter weather, so some payback in February was expected,” said Bill Adams, chief economist for Comerica Bank. “Even so, this was more of a slowdown than forecasters had thought.”

Adams said that job losses were concentrated in industries that were either likely affected by DOGE cuts, like education, healthcare, and information, or where tariff uncertainty is an issue, like retail, wholesale, and transportation.

Updated 12:53 PM EST

More tariff talk

Another tariff-related headline, this time suggesting the auto sector might be exempt from duties on goods imported from Canada and Mexico, is lifting stocks into the afternoon session and ahead of an expected statement from the White House later in the day.

Reuters has reported that President Trump held phone calls with the CEOs of Ford and General Motors, as well as the chairman of Stellantis, on potentially delaying tariffs on the auto sector by at least a month. 

The S&P 500 was last seen 35 points, or 0.61% higher on the session while the Nasdaq was marked 150 points, or 0.82% higher.

BREAKING: The US is considering a 1 month delay on auto tariffs on both Canada and Mexico.— The Kobeissi Letter (@KobeissiLetter) March 5, 2025

Updated at 11:24 AM EST

Crude realities

Global oil prices are trading at the lowest levels in four years, with U.S. crude testing the $65 per barrel mark, following a move by OPEC cartel members to boost supply and slowing demand tied to tariffs and economic uncertainty.

"The prospect of rising OPEC+ supply, combined with intensifying uncertainty over tariffs, hit oil market sentiment," said ING's head of commodities strategy Warren Patterson. "Overnight, there were suggestions that the Trump administration is considering some tariff relief on imports from Canada and Mexico. But heightened uncertainty is sending investors to the sidelines."

Brent crude futures contracts for May delivery, the global pricing benchmark, were last marked $2.42 lower on the session at $68.63 per barrel, with WTI futures for April down $2.76 at $65.50 per barrel, the lowest since May of 2023.

As brent crude plunges to its lowest level since Dec 2021, EURUSD having its best 3-day gain in almost a decade pic.twitter.com/4P4usaNQXN— Mike Zaccardi, CFA, CMT