WSJ What’s News in Markets: Trump’s Tesla, Trade-War Hiccups, Low-Flying Shares
Release Date: March 15, 2025
Host: Francesca Fontana, The Wall Street Journal

Introduction: A Tumultuous Week in the Markets

In the March 15th episode of WSJ What’s News in Markets, host Francesca Fontana delves into a week marked by heightened recession fears, escalating trade tensions, and significant stock market fluctuations. The episode provides a comprehensive overview of the major factors influencing market movements, highlighting key sectors and notable corporate performances.

Recession Fears and Consumer Sentiment

Slowing Household Spending: The episode opens with a discussion on the pervasive fear of an impending recession, which cast a shadow over many companies' earnings reports. A prime example highlighted was Kohl's, which expressed concerns about diminishing household spending. This caution led to a dramatic 24% drop in Kohl's stock on Tuesday, underscoring investor anxiety about consumer behavior.

Decline in Consumer Confidence: Francesca cites the latest data from the University of Michigan Index of Consumer Sentiment, noting, “the Index fell to its lowest level since November 2022” (04:15). This decline signals waning consumer confidence, a critical indicator that can influence market trends and economic forecasts.

Trade War Escalations: Focus on Alcohol

Initial Tariff Impositions: The trade war narrative gains momentum as Francesca reviews President Trump's February announcement of a 25% tariff on steel and aluminum imports effective March 12th. This move was met with swift retaliation from the European Union.

EU's Retaliatory Measures: On Wednesday, the EU imposed a 50% tariff on American whiskey, motorcycles, and motorboats starting April 1st. Francesca emphasizes, “we're going to focus on the whiskey” (02:40), highlighting the significant impact on U.S. distilleries like Brown Forman, the maker of Jack Daniel's.

Trump's Escalation to 200% Tariffs: The trade tensions intensified on Thursday when Trump threatened to impose a staggering 200% tariff on all alcohol imports from the EU. This escalation led to a sell-off among European alcoholic beverage manufacturers and further strained U.S.-EU trade relations.

Impact on Brown Forman: Brown Forman bore the brunt of these developments, with its stock falling 5.1% on Wednesday and declining a total of 5.8% for the week. Francesca notes, “the tariff threat was a blow to Brown Forman stock this week” (03:20), illustrating the tangible effects of trade policies on specific industries.

Tesla’s Volatile Performance and Trump's Unlikely Support

Stock Decline Amid Concerns: Tesla, under CEO Elon Musk, experienced significant stock volatility. On Monday, Tesla shares plummeted by 15%, marking their worst trading day since 2020 and bringing year-to-date losses to 45%. Francesca remarks, “shares lost 15%, its worst trading day since 2020” (01:10), highlighting investor unease over sales data and Musk’s involvement with the Trump administration.

Trump’s Unexpected Endorsement: In an unexpected twist, President Trump took to his Truth Social platform on Tuesday morning to announce his intention to purchase a new Tesla vehicle “as a show of confidence and support for Musk” (02:05). This surprising endorsement came despite Trump's previous stance against electric vehicles and his administration’s actions to curb EV infrastructure.

White House Appearance and Stock Rebound: Later that day, Trump joined Elon Musk outside the White House alongside several Tesla models, providing a notable photo opportunity. This public support contributed to a 4% rebound in Tesla shares on Tuesday. However, despite this temporary uplift, Tesla concluded the week with a nearly 5% loss, marking the eighth consecutive week of declines.

US Airlines: Mixed Performances Amid Lowered Guidance

Guidance Reductions: The airline industry faced challenges as major carriers like Delta Air Lines, American Airlines, and JetBlue lowered their earnings guidance early in the week. Francesca states, “Delta shares fell more than 7% on Tuesday, while American shares lost more than 8%” (04:50), reflecting investor concerns over the sector’s outlook.

JetBlue and Southwest: Diverging Fortunes: While JetBlue initially saw a gain of 4.2%, despite warning of first-quarter weakness, the stock ultimately ended the week with an 8% loss. In contrast, Southwest Airlines implemented strategic moves to boost revenue, including introducing charges for checked bags. This proactive approach paid off, with Southwest shares rising approximately 8% on Tuesday and ending the week with a 9% gain.

Market Summary: Major Indexes in Decline

The broader market performance reflected the week's unsettling themes. Francesca summarizes, “the S&P 500 entered correction territory, falling more than 10% from its recent high on February 19th” (03:00). All three major indexes experienced weekly declines: the Dow Jones Industrial Average dropped by about 3%, while both the S&P 500 and Nasdaq Composite each fell more than 2%.

Conclusion and Further Insights

Francesca Fontana wraps up the episode by directing listeners to her column in the Wall Street Journal's Exchange section for more detailed analyses of stock movements and underlying news. Produced by Zoe Culkin and Anthony Banci, with supervising producer Michael Kosmides, this episode encapsulates a week of significant market shifts driven by economic fears and geopolitical tensions.

For more in-depth coverage and ongoing market analysis, tune into the What’s News in Markets segment or visit the Wall Street Journal's Exchange section.