Stock market today: Dow, S&P 500, Nasdaq futures slide as Trump threatens Apple, EU with new tariffs
finance.yahoo.com
US stocks took a sharp turn lower before the bell on Friday, poised for weekly losses as Wall Street assessed President Trump's latest tariff salvos and what his giant tax bill means for the deficit and the economy.
Futures on the Dow Jones Industrial Average (YM=F) sank 1.5%, or over 600 points. Those tied to the S&P 500 (ES=F) fell 1.6%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) backed off 1.8%.
Trump said on Friday that Apple ( AAPL) must pay a 25% tariff on iPhones sold but not made in the US. The tech giant has begun shifting some manufacturing to India with China, home to its key suppliers, locked in a trade war with the US. Apple shares fell 3% after Trump's post to Truth Social.
At the same time, Trump threatened to hike the tariff on EU imports to "a straight 50%" beginning June 1 as trade talks between the two have stalled.
The president's warnings shattered the muted mood on Wall Street as investors wound down to the Memorial Day trading break on Monday.
It adds another supply-chain complication for companies already worried about the potential hit to the economy from Trump's tariff blitz. Earnings season has seen several companies hold off from providing full annual guidance thanks to uncertainty around tariffs.
All three major gauges are on track for a losing week. Stocks have suffered as deficit worries pushed up Treasury yields, intensified as Trump's giant tax bill forged ahead. Wall Street is still weighing the economic impact of Trump's revised bill, which cleared a key hurdle in the House vote for approval.
Fears that it could boost the US deficit by trillions have stoked a surge in longer-dated Treasury yields, already in high focus after a Moody's downgrade . The 30-year yield ( ^TYX) held above the key level of 5% on Friday, having risen to highs not hit since the financial crisis.
Focus has also begun to turn to Nvidia ( NVDA) earnings, expected on Wednesday after the bell.
This year, the chip giant has found itself in the crosshairs of Trump's fast-moving trade policy as well as debates in Big Tech over costly AI investments. Nevertheless, options traders expect a lower level of volatility in Nvidia's stock after its results next week, compared with recent quarters. |
