US benchmark equity indexes closed lower Thursday as markets analyzed the impact of President Donald Trump's new auto tariffs and intensifying trade tensions.

The Nasdaq Composite fell 0.5% to 17,804, while the Dow Jones Industrial Average dropped 0.4% to 42,299.7. The S&P 500 slipped 0.3% to 5,693.3. Energy saw the biggest drop among sectors, while consumer staples led the gainers.

Trump late Wednesday announced 25% tariffs on imports of automobiles and certain auto parts.The tariffs are expected to be a "hurricane-like" headwind to foreign and many US automakers, and could result in vehicle price increases, Wedbush Securities said.

General Motors shares slid 7.4% Thursday, the steepest decline on the S&P 500, while Ford Motor decreased 3.9%. Of the two, GM may be more exposed to a potential impact from new tariffs as its production in Mexico and Canada is more than double than that of Ford's, UBS Securities said in a note. Tesla shares rose 0.4%. The electric vehicle maker is less likely to be impacted by the new tariffs as its production and assembly are in the US, according to Wedbush.

European Commission President Ursula von der Leyen criticized the tariffs. Trump said in a social media post that his administration would impose higher tariffs on the European Union and Canada if the two work together "in order to do economic harm" to the US.

Bloomberg News reported Wednesday that the Trump administration may impose duties on copper imports in the coming weeks.

US Treasury yields were mixed Thursday, with the two-year rate falling 1.4 basis points to 3.99% and the 10-year rate rising 2.5 basis points to 4.36%.

In economic news, the US economy grew at a 2.4% annualized rate in the fourth quarter, compared with a 2.3% pace projected previously, according to a third estimate by the Bureau of Economic Analysis. The consensus was for the growth rate to be left unrevised in a survey compiled by Bloomberg. How much is this due to the front loading of purchases to get ahead of tariffs?

The latest government data also showed that consumer spending slowed unexpectedly in the December quarter. Pending home sales in the US rose more than projected in February, according to the National Association of Realtors, which forecast mortgage rates to fall moderately this year from 2024.

West Texas Intermediate crude oil rose 0.3% to $69.84 a barrel Thursday.

In other company news, GameStop plans a private offering of $1.3 billion in convertible senior notes due 2030. The company's shares slumped 22%.

Petco Health & Wellness shares soared 32%. The pet store chain's core profit results for its fiscal fourth quarter and guidance for the full year came in better than expected late Wednesday.

Dollar Tree was the best performer on the S&P 500 Thursday, up 11%. The discount retailer on Wednesday agreed to sell its Family Dollar business to investment management firms Brigade Capital Management and Macellum Capital Management in a deal worth roughly $1.01 billion.

Gold increased 1.5% to $3,097.6 per troy ounce, while silver jumped 3.2% to $35.31 per ounce.

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