04:43 PM EDT, 03/26/2025 (MT Newswires) -- US benchmark equity indexes closed lower on Wednesday as markets braced for new auto tariffs amid concerns that import duties could drive inflation higher.

The Nasdaq Composite declined 2% at 17,899, while the S&P 500 fell 1.1% to 5,712.2. The Dow Jones Industrial Average slipped 0.3% to 42,454.8. Among sectors, technology saw the biggest drop, while consumer staples paced the gainers.

President Donald Trump was scheduled to announce new auto tariffs at 4 pm Wednesday, media outlets reported, citing White House Press Secretary Karoline Leavitt.

The Trump administration may impose tariffs on copper imports in the coming weeks, well ahead of a deadline for a decision, Bloomberg reported Wednesday, citing unnamed sources.

On Tuesday, Trump said that tariffs due to take effect in April will likely be more "lenient than reciprocal," CNBC reported.

The risk of inflation stalling above the Federal Reserve's 2% target or even accelerating in the near term seems to have grown amid potential effects from tariffs, St. Louis Fed President Alberto Musalem said Wednesday.

"Inflation remains above the (Federal Open Market Committee's) 2% target and recent convergence toward the target has been limited, even before potential tariff effects," Musalem said in remarks prepared for a speech in Paducah, Kentucky.

US Treasury yields were higher, with the 10-year rate increasing 4.4 basis points to 4.35% and the two-year rate rising 3.5 basis points to 4.02%.

In economic news, US durable goods orders unexpectedly increased last month as gains in defense aircraft and motor vehicles drove the transportation equipment component higher, government data showed Wednesday.

"The underlying trend (in durable goods orders) has turned up recently, improving prospects for the struggling factory sector," BMO Capital Markets said.

Mortgage applications in the US fell for a second consecutive week as refinancing activity reached its lowest level in a month, the Mortgage Bankers Association said.

West Texas Intermediate crude oil was up 1.2% at $69.82 a barrel. Commercial crude stockpiles in the US unexpectedly fell last week as motor gasoline posted a draw, government data showed.

In company news, Nvidia ( NVDA ) is moving closer to a deal to buy Lepton AI, a startup that rents out servers powered by Nvidia's ( NVDA ) artificial intelligence chips, The Information reported, citing an unnamed source. Nvidia ( NVDA ) shares were down 5.7%, the steepest decline on the Dow and among the worst on the S&P 500.

Cintas ( CTAS ) shares jumped 5.8%, the top gainer on the S&P 500, as the uniform supplier raised its full-year earnings outlook after its fiscal third-quarter results topped Wall Street's views.

Paychex ( PAYX ) followed Cintas ( CTAS ) on the S&P 500, up 4.2%. The human resources, payroll and benefits management provider logged higher-than-expected fiscal third-quarter earnings, buoyed by revenue growth across its two main business segments.

Gold was flat at $3,054.90 per troy ounce, while silver fell 0.1% to $34.14 per ounce.