US stocks fell on Friday to register weekly losses as investors assessed President Trump’s latest tariff threats and the potential impact of his massive tax bill on the deficit and the economy.
The Dow Jones Industrial Average (^DJI) sank 0.6%. The S&P 500 (^GSPC) also fell roughly 0.7%. The tech-heavy Nasdaq Composite (^IXIC) backed off about 1%.
All three major averages fell more than 2% for the week.
The three indexes trimmed steeper losses that followed Trump’s comment 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 about 3%.
On Friday afternoon, Trump implied the tariffs would apply to other cell phone manufacturers.
“It would be more, it would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” Trump told reporters on Friday afternoon. “Again, when they build their plant here there’s no tariffs. So they’re going to be building plants here.”
At the same time, Trump threatened to hike the tariff on EU imports to “a straight 50%” beginning June 1 as trade talks with the bloc have stalled.
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The president’s warnings shattered a more muted mood on Wall Street as investors wound down to the Memorial Day trading break on Monday.
His comments also created another supply chain complication for companies that are 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 due to uncertainty around tariffs.
Stocks have suffered this week as deficit worries pushed up Treasury yields, which intensified as Trump’s 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 the legislation could boost the US deficit by trillions have stoked a surge in longer-dated Treasury yields, which were already in focus after a Moody’s downgrade. The 30-year yield (^TYX) eased but held above the key level of 5% on Friday after recently reaching highs not seen since the financial crisis.
Wall Street’s attention has also begun to turn to Nvidia (NVDA) earnings, due 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.
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Stocks closed out the week in the red on Friday, as renewed threats from President Trump against the European Union and iPhone maker Apple (AAPL) reignited concerns that the trade war is far from over.
Investors were also rattled by rising long-term interest rates, reflecting growing anxiety over excessive U.S. spending as a sweeping tax-and-spending package advanced through Congress.
The Dow Jones Industrial Average (^DJI) sank 0.3% for the session, but was down more than 2% for the week. The S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) also registered weekly losses of more than 2%.
Shares of US Steel (X) skyrocketed more than 20% in the last half hour of trading on Friday after President Trump announced the American company will form a partnership with Nippon Steel of Japan.
Meanwhile, Apple shares fell nearly 3% after President Trump said the company must pay at least a 25% tariff, unless iPhones sold in the US are manufactured domestically.
Trump also threatened to hike tariffs on EU imports to “a straight 50%” beginning June 1, as talks have stalled.
The market slumped this week as 10-year and 30-year Treasury bond prices declined, a sign investors may be worried that the tax bill passed in the House on Thursday will increase US debt.
Next week’s trading will be shortened in observance of Memorial Day. The stock market will be closed on Monday.
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Next week’s trading will be shortened due to Memorial Day. The stock market will be closed on Monday.
Meanwhile, the big focus next week will be on Nvidia (NVDA). The AI chip giant will report its earnings on Wednesday, after the bell.
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President Trump reiterated his demand that Apple (AAPL) — and potentially other smartphone manufacturers — produce devices in the United States if they intend to sell them domestically. Otherwise, they could face tariffs.
“If they’re going to sell it in America, I want it to be built in the United States,” Trump told reporters on Friday afternoon.
His comments followed a social media post earlier that day in which he stated Apple must pay a 25% tariff on iPhones that are sold in the U.S. but not manufactured domestically.
Speaking during a Q&A session after signing nuclear-related executive orders, Trump suggested the tariff policy would apply not only to Apple but also to competitors like Samsung.
“It would be also Samsung and anybody that makes that product,” he said. “Otherwise, it wouldn’t be fair. Again, when they build their plant here, there’s no tariffs. So they’re going to be building plants here.”
Trump doubled down on the idea that companies should eat the costs of tariffs and not pass them down to customers.
“They have to take out some of their profits,” Trump said. “They’ll make a little less money. But I don’t want the consumer to pay.”
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Nuclear stocks rallied after President Trump signed executive orders to revive the industry.
One of the orders signed was aimed at reforming the Nuclear Regulatory Commission, nuclear reactor testing, and reinvigorating the nuclear industrial base.
Nuclear-related stocks Oklo (OKLO), Constellation Energy (CEG), and Nano Nuclear (NNE) all rose by double-digit percentages.
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Yahoo Finance’s Alexandra Canal reports:
Read more here.
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Solar stocks rebounded on Friday but were still on track to close out the week with steep losses as Wall Street assesses last-minute changes slipped into the tax-and-spending bill approved by the House this week, which threaten to disrupt the industry.
SolarEdge (SEDG), Sunrun (RUN), Complete Solaria (SPWR), and Enphase Energy (ENPH) were among the biggest decliners this week, all down double-digit percentages.
Most of the damage to the sector came on Thursday after the “big, beautiful bill” passed by one vote called for ending key investment and production tax credits from the Biden-era Inflation Reduction Act three years sooner than what analysts expected. Wind and solar projects eligible for credits would need to begin construction within 60 days of the bill being signed into law.
While analysts believe the current version of the bill is unlikely to survive intact in the Senate, the prospect of tighter restrictions still spooked investors, prompting a broad sell-off.
“To be finalized and signed into law in its current form — that would create a lot of disruption and layoffs, project cancellations, potentially bankruptcies,” Pavel Molchanov, investment strategy analyst at Raymond James, told Yahoo Finance.
Molchanov said the industry will be busy in the next few weeks lobbying the Senate to revert to less severe provisions. Key senators from states where solar and wind initiatives are located are expected to also push for a softer stance.
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Yahoo Finance’s Laura Bratton reports:
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Yahoo Finance’s Ben Werschkul reports:
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Apple (AAPL) stock fell more than 2% mid-morning Friday after President Trump said the company faces at least a 25% tariff, unless its iPhones sold in the US are made domestically.
“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,” Trump said in a Truth Social post on Friday morning. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
Apple shares led the rest of the “Magnificent Seven” group lower during the session. Tesla (TSLA), Meta (META), Alphabet (GOOGL, GOOG), Amazon (AMZN), Microsoft (MSFT), and Nvidia (NVDA) all declined roughly 1% during the session.
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Bitcoin (BTC-USD) dropped nearly 2% from its recent record high to hover near $109,000 amid an overall market sell-off sparked by President Trump’s tariff threats posted on Friday morning against the EU, and iPhone maker Apple.
The cryptocurrency had touched highs of north of $111,900 on Thursday before retreating.
Bitcoin has seen a monster rally over the past month, gaining more than 40% since its April low.
The cryptocurrency is up 16% year to date.
Crypto-related stocks also sank on Friday. Shares of Strategy (MSTR) dropped more than 3%. Mara Holdings (MARA) and Riot Platforms (RIOT) dropped more than 5% and 3%, respectively.
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US stocks took a sharp turn lower on Friday after President Trump threatened tariffs on the EU, and iPhone maker Apple.
The Dow Jones Industrial Average (^DJI) sank 1%, or over 400 points. The S&P 500 (^GSPC) fell 1.3%. The tech-heavy Nasdaq Composite (^IXIC) backed off 1.2%.
Apple shares sank after Trump said the iPhone maker would face at least 25% tariffs if it did not make its iPhones sold in the US domestically.
He also threatened to hike the tariff on EU imports to “a straight 50%” beginning June 1, given that trade talks between the two sides have stalled.
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Volvo Cars (VOLCAR-B.ST) warned that it’s customers may have to pay a large part of the company’s tariff related cost increases, the group’s CEO Hakan Samuelsson told Reuters on Friday. Shares in the company fell over 4%.
Reuters reports:
Read more here.
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Stocks in Europe sank as President Trump’s tariff broadside upended Wall Street’s calculus about the future of US tariff policy.
Trump said he would suggest a “straight 50%” tariff on all EU goods beginning June 1, as trade talks have stalled between the US and the bloc of European nations.
Europe’s broad Stoxx (^STOXX) 600 index fell as much as 2% before recouping some of those losses.
Trump’s threat spurred bets on further central bank cuts in coming months, spurring a bond rally, as Bloomberg details:
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US stock futures turned sharply lower after President Trump threatened new tariffs on the European Union and Apple (AAPL).
In addition to warning Apple of a 25% tariff (see post below), Trump proposed applying a 50% tariff on all EU goods starting June 1 after trade talks stalled.
“The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,” Trump posted on Truth Social. “Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States.”
Futures on the Dow Jones Industrial Average (YM=F) dropped 1.4%, or nearly 600 points, while those tied to the S&P 500 (ES=F) fell 1.6%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) sank 1.9%.
Futures declined modestly after Trump’s post about Apple, but the selling accelerated about 25 minutes later when the president’s comments turned toward the EU.
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President Trump sent a warning shot to Apple (AAPL) on Friday, sending shares more than 3% lower in premarket trading. Futures on the major stock indexes also dipped at the same time.
“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,” Trump posted on his Truth Social platform.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,” Trump warned.
Reuters reports that it is not clear if Trump can levy a tariff on an individual company. More details:
Read more here.
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Deckers Outdoor (DECK) said late Thursday it won’t provide annual guidance because of uncertainty around the economic impact of US tariffs.
The maker of Hoka and UGG footwear also posted a disappointing quarterly sales forecast, helping drive its shares 17% lower in premarket.
Reuters reports:
Read more here.
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The yield on the 30-year Treasury (^TYX) has risen above 5% and Bank of America (BAC) strategist, Michael Hartnett has said investors should take advantage and buy the sell-off in long-dated Treasurys.
Bloomberg News reports:
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Shares of nuclear power companies soared in premarket after Reuters reported that President Trump will soon sign executive orders aimed at jump-starting the nuclear energy industry.
The orders, which could come later on Friday, aim to smooth the regulatory process for approving new reactors, the report said, citing sources.
Shares of Oklo (OKLO), a nuclear start-up backed by OpenAI’s Sam Altman, surged 19%. Other big gainers included Nano Nuclear Energy (NNE) and NuScale Power (SMR), both up around 17%.
Among nuclear utilities, Constellation Energy (CEG) put on 5%, Vistra (VST) gained 4%, and GE Vernova (GEV) added 3%.
The US is expecting the first rise in power demand in two decades from the boom in artificial intelligence, Reuters noted. Trump declared an energy emergency on his first day in office in January.
