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US stocks fell on Friday, on pace for weekly losses as investors assessed President Trump's latest tariff threats and what his giant tax bill means for the deficit and the economy.
The Dow Jones Industrial Average (^DJI) sank 0.4%. The S&P 500 (^GSPC) also fell roughly 0.4%. The tech-heavy Nasdaq Composite (^IXIC) backed off about 0.6%.
All three indexes trimmed steeper losses after 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 on 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 a more 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) eased but 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.
LIVE 19 updates
Apple's Tim Cook thought he had a Plan B for Trump's tariffs. It wasn't enough.
Yahoo Finance's Alexandra Canal reports:
Read more here.
Solar stocks rebound, but on pace to end with steep weekly losses after tax bill threatens to disrupt industry
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.
Big Tech's spending drove Nvidia's rise
Yahoo Finance's Laura Bratton reports:
Read more here.
Trump threatens Apple with tariffs. He has been making such threats since 2016.
Yahoo Finance's Ben Werschkul reports:
Read more here:
Apple leads 'Mag 7' lower after Trump threatens 25% tariffs on iPhone maker
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.
Bitcoin drops from record to hover near $109,000, crypto stocks fall
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.
Trump's tariffs hit European luxury industry, shares tank
Stocks sink as Trump threatens tariffs on EU, Apple
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.
Volvo Cars stock falls as CEO warns customers must pay for rising tariffs
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:
Europe stocks sink, bonds rally after Trump threat
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:
Stock futures sink after Trump recommends 50% tariff on EU goods
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.
Apple stock falls 3% after Trump threatens 25% tariff on iPhones not made in the US
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:
Decker's stock sinks as Hoka maker withholds FY forecast thanks to tariffs
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:
Good morning. Here's what's happening today.
Nuclear power stocks soar with Trump said to sign executive orders soon
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.
Trump's DOJ may let Boeing escape guilty plea in fatal crashes
Asian markets rise with investors digesting the US and China resuming trade talks
Asian markets mostly advanced overnight Thursday as investors weighed regional economic data and fresh diplomatic signals between the US and China.
Japan’s Nikkei 225 (^N225) rose 1% with the government recording core inflation at 3.5%, the highest in over 2 years.
South Korea’s Kospi (^KS11) added 0.4% despite weakness in Korean tech stocks.
Australia’s S&P/ASX 200 (^AXJO) climbed 0.3%, led by gains in miners and banks.
Hong Kong’s Hang Seng Index (^HSI) and China’s CSI 300 (000300.SS) were flat at the open, as caution prevailed among investors navigating mixed economic signals from the mainland.
Many of the gains were driven by Chinese Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary of State Christopher Landau held a phone call, agreeing to keep communication open. The exchange, confirmed by China’s Foreign Ministry, comes amid efforts by both nations to stabilize ties following trade tensions and policy disputes.
Oil prices fall as OPEC+ hint at production increase
Oil prices fell late Thursday as OPEC+ producers pointed toward an increase in supply as the US faces a surplus.
Bloomberg reports:
