U.S. stock markets retreated sharply on Friday as investors reacted to renewed trade threats from US President Donald Trump, raising fresh concerns about international commerce and economic stability. The declines capped a volatile week on Wall Street, with all major indexes heading toward weekly losses.
The Dow Jones Industrial Average fell by over 300 points, representing a 0.77% drop. The S&P 500 lost approximately 0.91%, while the Nasdaq Composite declined by 1.05%. The downturn came amid escalating geopolitical heat and uncertainty surrounding Trump’s proposed economic measures.
Trump announced that Apple would face a 25% tariff on iPhones sold in the U.S. but manufactured abroad. This move targets the company’s extensive supply chain, which relies heavily on production facilities in China, even as some operations have shifted to India. Apple’s stock dropped by over 2% following the announcement, which was made on his Truth Social platform.
In a separate move, Trump warned of a 50% tariff on European Union imports starting June 1, citing a breakdown in trade negotiations. The threat of new tariffs added to the broader market anxiety as businesses and investors grapple with an unpredictable trade policy environment.
These developments come as markets approach the Memorial Day weekend, a typically subdued trading period. However, the renewed tariff rhetoric and its implications for corporate earnings and global supply chains have disrupted the usual calm. Several firms have refrained from issuing full-year guidance during the current earnings season, citing ongoing tariff uncertainties.
Investor sentiment has also been weighed down by Trump’s advancing tax bill, which has raised concerns about its impact on the national deficit. The legislation, having passed a key House vote, is projected by some analysts to increase the deficit by trillions of dollars. This fiscal outlook has driven up yields on long-term U.S. Treasury bonds, further pressuring equities.
The 30-year yield remained above 5% on Friday, a level not seen since the global financial crisis, following a recent downgrade by Moody’s. Looking ahead, attention is turning to Nvidia’s upcoming earnings report, due after markets close on Wednesday. The semiconductor company has been at the intersection of Trump’s trade policies and growing debates over artificial intelligence investment strategies.
Despite its exposure to trade volatility, market analysts expect a more muted reaction in Nvidia’s stock compared to previous quarters. As the week closes, the market’s focus remains fixed on Washington’s evolving economic agenda and its broader implications for trade, inflation, and growth, setting the tone for trading in the weeks to come. – By MENA Newswire News Desk.