OPPPS! tRUMP’s done it again! Markets crashing, IRAs going broke…
CNBC reorts:
Stocks declined Friday after President Donald Trump ramped up his trade fight again, slapping a tariff on Apple for foreign-made iPhones and recommending new stiffer duties on the European Union.
The Dow Jones Industrial Average lost 359 points, or 0.9%. The S&P 500 shed 0.9%, and the Nasdaq Composite dropped 1.2%.
Apple shares shed more than 2% after Trump posted on Truth Social that iPhones sold in the U.S. must be made in the U.S. and if they are not "a tariff of at least 25% must be paid by Apple." The move against Apple by Trump is the first against a specific company in his tariff rollout this year.
Micron and Qualcomm declined 2.5% and 3.3%, respectively. Nvidia shares lost 1%.
Separately, the president said trade discussions with the EU "are going nowhere" and so he's "recommending a straight 50% tariff on the European Union, starting on June 1, 2025."
Trump's actions come at a time when tariff tensions were easing. Trump in April implemented duties on most nations in the world, which rattled the stock market and nearly put the S&P 500 in a bear market. The president then paused the stiffest tariffs for 90 days and hatched some preliminary agreements with the U.K. and China, causing stocks to recover. The S&P 500 got back to even on the year last week.
Investors were buying stocks on speculation that more agreements would be rolling out with various nations during this three-month pause period. Friday's actions by Trump could mean that hope was misplaced.
"We've had this de-escalation tailwind at the market's back for like six weeks now — and the market has had one of its best six-week stretches in the last 75 years — and a re-escalation of trade war rhetoric threatens that. I don't think we'll retest the lows or anything like that, unless it really ramps up, but this is certainly a step in the wrong direction from the market's perspective," said Ross Mayfield, investment strategist at Baird, in an interview with CNBC.
Friday's declines added to the market's weekly losses. The S&P 500, Dow and and Nasdaq are all down more than 2% this week.
Stocks declined Friday after President Donald Trump ramped up his trade fight again, slapping a tariff on Apple for foreign-made iPhones and recommending new stiffer duties on the European Union.
The Dow Jones Industrial Average lost 359 points, or 0.9%. The S&P 500 shed 0.9%, and the Nasdaq Composite dropped 1.2%.
Apple shares shed more than 2% after Trump posted on Truth Social that iPhones sold in the U.S. must be made in the U.S. and if they are not "a tariff of at least 25% must be paid by Apple." The move against Apple by Trump is the first against a specific company in his tariff rollout this year.
Micron and Qualcomm declined 2.5% and 3.3%, respectively. Nvidia shares lost 1%.
Separately, the president said trade discussions with the EU "are going nowhere" and so he's "recommending a straight 50% tariff on the European Union, starting on June 1, 2025."
Trump's actions come at a time when tariff tensions were easing. Trump in April implemented duties on most nations in the world, which rattled the stock market and nearly put the S&P 500 in a bear market. The president then paused the stiffest tariffs for 90 days and hatched some preliminary agreements with the U.K. and China, causing stocks to recover. The S&P 500 got back to even on the year last week.
Investors were buying stocks on speculation that more agreements would be rolling out with various nations during this three-month pause period. Friday's actions by Trump could mean that hope was misplaced.
"We've had this de-escalation tailwind at the market's back for like six weeks now — and the market has had one of its best six-week stretches in the last 75 years — and a re-escalation of trade war rhetoric threatens that. I don't think we'll retest the lows or anything like that, unless it really ramps up, but this is certainly a step in the wrong direction from the market's perspective," said Ross Mayfield, investment strategist at Baird, in an interview with CNBC.
Friday's declines added to the market's weekly losses. The S&P 500, Dow and and Nasdaq are all down more than 2% this week.
