Wall Street Falls After Trump’s Threats to Apple and the EU; Ends Week in the Red

Quick overview

Markets reacted sharply to fresh tariff threats from U.S. President Donald Trump, this time aimed at the European Union and tech giant Apple, triggering a broad selloff and capping a losing week for Wall Street.

All three major U.S. stock indexes fell on Friday. The Dow Jones Industrial Average, composed of 30 blue-chip companies, declined 0.61% to close at 41,603.07 points. The S&P 500, which tracks the largest and most valuable companies, dropped 0.67% to 5,802.82 points. The tech-heavy Nasdaq Composite fell 1% to 18,737.21.

Apple hit a two-week low, tumbling 3% after Trump warned that the iPhone maker could face a 25% tariff on phones sold in the U.S. but manufactured abroad. The announcement sparked concerns across the tech sector.

Trump also threatened to impose 50% tariffs on goods from the European Union if a suspension period for tariffs expires without a new trade agreement. The renewed threats stoked fears about global trade and further weighed on investor sentiment.

Most mega-cap tech stocks followed Apple’s downward trajectory. Nvidia, a leader in artificial intelligence, fell 1.61%, while Alphabet (Google’s parent company) dropped 1.40%. Microsoft declined 1.03%, and Amazon.com slipped 1.04%.

The CBOE Volatility Index (VIX), often referred to as Wall Street’s “fear gauge,” spiked to its highest level in over two weeks. For the week, the Dow Jones lost 2.21%, the S&P 500 shed 1.34%, and the Nasdaq posted a 2.97% decline.

Path to Rate Cuts Later This Year

Investor concerns about the fiscal health of the U.S. and the Trump administration’s unpredictable trade policies added to the economic unease.

Federal Reserve Governor Christopher Waller said Thursday that he still envisions a path toward interest rate cuts later this year. “If we can reduce tariffs by around 10% and set the stage by July, we’ll be in good shape for the second half of the year and well-positioned to move forward with rate cuts during that period,” Waller stated.

Markets also found some relief in a U.S. Supreme Court ruling affirming the Federal Reserve’s independence. The decision ruled out the possibility of President Trump firing Fed Chair Jerome Powell, whom Trump has repeatedly pressured to lower interest rates.

ABOUT THE AUTHOR See More

Ignacio Teson

Economist and Financial Analyst

Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

Related Articles