Why Most Auto Stocks Began the Third Quarter on a Weak Note

During the week ended July 6, 2018, the broader market largely traded on a positive note, and the S&P 500 benchmark rose by 1.5%. In the last couple of weeks, trade tensions between the US and trading partners including China, some European countries, and Canada have escalated. Uncertainties about the ongoing auto tariff probe under section 232 are haunting auto investors. These rising trade tensions could be one of the reasons why auto stocks underperformed the broader market last week. Let’s take a closer look.