Stocks fell sharply in early trading Friday as concerns about global trade tensions reignited following fresh social media posts from President Donald Trump.
The Dow Jones Industrial Average was down 0.9%, or 400 points, about 15 minutes after the opening bell, while the benchmark S&P 500 and tech-heavy Nasdaq Composite dropped 1.1% and 1.4%, respectively. The major indexes were little changed on Thursday as the stock market stabilized after posting big losses the previous session amid rising concerns about the federal deficit as a budget bill moves through Congress.
Volatility returned this morning after Trump said on Truth Social that trade discussions with the E.U. aren’t going well and that he recommends a 50% tariff on imports from the E.U. beginning on June 1. In a separate post, the president said that any iPhone sold in this U.S. must be made in the U.S., and that Apple (AAPL) would have to pay a tariff “of at least 25%” if that doesn’t happen.
Coming into this week, stocks had rallied as Trump appeared to soften his tone on trade and the U.S. paused massive tariffs it had imposed on leading trade partners, notably China. The comments this morning revive concerns about the unpredictable nature of Trump’s trade policy and the potential impact it could have on economic growth and corporate profits.
With this morning’s sell-off, each of the major indexes are down nearly 3% for the week. Coming into this week, stocks had gained ground in three of the previous four weeks.
Apple shares, which are riding a seven-day losing streak coming into Friday’s session, were down nearly 3% in early trading, leading a broad decline in mega-cap tech stocks. Chipmaker Nvidia (NVDA) fell 2%, while Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), Meta Platforms (META) and Tesla (TSLA) each declined about 1%.
Among other noteworthy tech sector movers, chip companies Advanced Micro Devices (AMD) and Marvell Technology (MRVL) were each down about 2%, while Micron (MU) and Qualcomm (QCOM) each retreated about 4%. The VanEck Semiconductor ETF (SMH) was down 2.5%.
A handful of stocks were tumbling following the release of quarterly results. Shares of Deckers (DECK), the maker of UGG, Hoka and other shoe brands, plunged 23%, while Ross Stores (ROST) dropped 11% and Workday (WDAY) fell 12%.
Bitcoin was at $109,100 this morning, after surging to a record high near $112,000 yesterday. The digital currency this week hit an all-time high for the first time since just before President Trump took office in January.
The yield on the 10-year Treasury note, which directly affects borrowing costs on all sorts of consumer and business loans, was at 4.50% recently, down from 4.55% at yesterday’s close. The yield moved as high as 4.63% yesterday, its highest level in more than three months.
The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, was down 0.5% at 99.43.
Gold futures were up 1.7% at $3,350 an ounce as investors turn to the traditional safe haven asset amid the downturn in equities. West Texas Intermediate futures, the U.S. crude oil benchmark, slipped 1% to $60.55 per barrel.
Trump Wants iPhones Made in US, or Apple Faces Tariffs
31 minutes ago
President Donald Trump warned Apple (AAPL) Friday morning that the administration will impose a tariff of at least 25% on iPhones made outside the U.S., including India, dragging the shares of the tech giant further into the red this year.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” the president said in a post on his Truth Social platform of his comments to the Apple CEO. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
The news pushed Apple’s shares sharply lower in early trading. The stock, which is riding a seven-day losing streak, was down nearly 3% recently.
Trump’s comments are his latest push to ensure that Apple doesn’t expand iPhone production in India as it shifts away from manufacturing in China, which faces among the highest import tariffs of U.S. trading partners. Apple’s imports into the U.S. have so far escaped being hit since the Trump administration exempted smartphones, computers and some other consumer electronic devices from “reciprocal” tariffs imposed in early April.
Wedbush analyst Dan Ives on the social network X said Trump’s plan would lead to iPhone prices of around $3,500. “As we have discussed this would result in an iPhone price point that is a non-starter for Cupertino,” he wrote Friday morning.
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Major Index Futures Point to Sharply Lower Open
1 hr 29 min ago
Futures tied to the Dow Jones Industrial Average were down 1.2%, or about 500 points.
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S&P 500 futures dropped 1.4%.
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Nasdaq 100 futures tumbled 1.8%.
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