US stocks fell on Friday, heading toward weekly losses as investors evaluated President Trump’s latest tariff threats and the potential impact of his proposed tax bill on the deficit and the economy.
Market Movements
The Dow Jones Industrial Average (^DJI) dipped 0.3%, while the S&P 500 (^GSPC) also dropped roughly 0.3%. The tech-heavy Nasdaq Composite (^IXIC) declined by about 0.6%. However, all three indexes trimmed steeper losses after Trump said Apple (AAPL) would face a 25% tariff on iPhones sold but not made in the US. The tech giant has already started shifting some of its manufacturing to India, as the US continues its trade war with China. Apple shares fell 3% following Trump’s remarks on Truth Social.
Trump’s Tariff Remarks
On Friday afternoon, Trump indicated that the tariffs would extend to other cell phone manufacturers as well. “It would be more, it would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” Trump said. “Again, when they build their plant here, there’s no tariffs. So they’re going to be building plants here.”
In addition to the tariffs on electronics, Trump threatened to raise tariffs on EU imports to “a straight 50%” starting June 1, as trade talks between the US and the EU have stalled.
Market Impact
Trump’s tariff threats added further uncertainty for Wall Street as investors prepared for the Memorial Day trading break. Many companies have been hesitant to provide full annual guidance during earnings season due to the unpredictability surrounding tariffs. The looming concerns over the US deficit also pushed Treasury yields higher, particularly in long-dated bonds, as Trump’s revised tax bill advanced through the legislative process. Treasury yields surged, with the 30-year yield (^TYX) easing but holding above the 5% mark.
Nvidia Earnings and Economic Outlook
The focus has begun to shift to Nvidia (NVDA) earnings, which are scheduled for release on Wednesday after the bell. The chip giant has found itself caught in the crosshairs of Trump’s fast-moving trade policies and the broader debate over Big Tech’s costly AI investments. Despite these challenges, options traders expect lower volatility in Nvidia’s stock following its earnings announcement compared to recent quarters.
