President Donald Trump’s latest tariff threats have caused a stir on Wall Street, leading to a drop in U.S. stocks. Trump threatened to impose 50% tariffs on the European Union, which could start in just over a week. This news led to a 0.7% decline in the S&P 500, marking its worst week in the last seven. The Dow Jones Industrial Average also fell by 0.6%, while the Nasdaq composite sank by 1%.
The European Union is one of the United States’ largest trading partners, and Trump’s threats immediately impacted stock markets in Europe, with France’s CAC 40 index losing 1.7%. In the U.S., stock indexes tumbled, with the S&P 500 dropping as much as 1.3% at the start of trading. Trump’s remarks specifically targeting Apple caused the tech giant’s stock to plummet by 3%.
Trump later clarified his stance, stating that all smartphones made abroad would be taxed, not just Apple products. This news rattled the market, with uncertainty surrounding the potential impact of these tariffs. Companies like Deckers Outdoor and Ross Stores expressed concerns about the economic uncertainty, leading to declines in their stock prices.
However, not all companies were negatively impacted. Intuit saw an 8.1% increase in its stock price after reporting a stronger profit for the latest quarter and raising its revenue and profit forecasts for the full fiscal year. Additionally, stocks in the nuclear industry rallied after Trump signed executive orders to expedite nuclear licensing decisions.
Overall, the S&P 500 closed down by 39.19 points, the Dow Jones Industrial Average dropped by 256.02 points, and the Nasdaq composite sank by 188.53 points. The bond market also experienced fluctuations, with Treasury yields falling slightly. In international markets, Asian indexes saw mixed results, with Tokyo’s Nikkei 225 rising by 0.5% and Shanghai’s stocks falling by 0.9%.
Despite recent setbacks, Wall Street had been recovering from previous losses incurred due to the trade war. The S&P 500 had climbed back within 3% of its all-time high before Trump’s latest tariff threats reignited concerns about the impact of trade tensions on the global economy.
