04:45 PM EST, 03/05/2025 (MT Newswires) -- US benchmark equity indexes closed higher on Wednesday as the White House granted a one-month tariff exemption to automakers.

The Nasdaq Composite was up 1.5% at 18,552.7. The Dow Jones Industrial Average and the S&P 500 rose 1.1% each to 43,006.6 and 5,842.6, respectively. Barring energy and utilities, all sectors notched gains, led by materials.

President Donald Trump is exempting automakers from tariffs on Mexico and Canada for a month, and may consider additional relief, CNBC reported Wednesday, citing a White House spokesperson.

Trump's recently announced 25% tariffs against the two nations went into effect Tuesday, while the US government doubled its levy on Chinese imports. Canada and China have announced retaliatory measures.

US Treasury yields were higher, with the 10-year rate rising seven basis points to 4.28% and the two-year rate gaining 5.2 basis points to 4.007%.

In economic news, two surveys provided mixed signals regarding the US services sector in February, as the Institute for Supply Management's data showed activity unexpectedly picking up pace, while S&P Global (SPGI) indicated a growth slowdown. Both reports, however, pointed to uncertainty around Trump's policies on trade tariffs.

The Federal Reserve said in its latest Beige Book that economic activity increased "slightly" since mid-January, though there were concerns around the impact of tariffs.

Employment growth in the US private sector eased last month to its slowest pace since July, Automatic Data Processing (ADP) reported. "Policy uncertainty and a slowdown in consumer spending might have led to layoffs or a slowdown in hiring last month," ADP Chief Economist Nela Richardson said.

The Bureau of Labor Statistics is expected to report Friday that the US added 160,000 nonfarm jobs for February, which would mark a rise from a 143,000 gain posted for the month prior, according to a Bloomberg-compiled survey.

West Texas Intermediate crude oil was down 2.7% at $66.40 a barrel.

In company news, Brown-Forman's (BF.A, BF.B) fiscal third-quarter earnings topped market estimates, but revenue unexpectedly declined year over year. The wine and spirits maker reiterated its full-year outlook. Its class A and B shares jumped 10% each, among the top gainers on the S&P 500.

CrowdStrike ( CRWD ) shares sank 6.3%, the steepest decline on the S&P 500. Late Tuesday, the cybersecurity firm issued earnings outlooks below market estimates for its fiscal first quarter and full year.

Abercrombie & Fitch ( ANF ) shares plunged 9.2% Wednesday after the apparel retailer guided for a slowdown in sales growth in fiscal 2025, while its first-quarter earnings outlook fell short of Wall Street estimates.

Gold rose 0.3% to $2,928.30 per troy ounce, while silver increased 2.7% to $33.24 per ounce.