US Futures Drop as Trump Threatens Apple – Europe Market Wrap

US stock futures drifted on Friday as a calmer market for Treasuries helped temper investors’ concerns over America’s fiscal outlook.

S&P 500 contracts were little changed after US stocks suffered three days of losses, that was until a Truth Social post from Trump in which he threatened 25% tariffs on Apple IPhones not made in the US. The US benchmark remains on course for its worst week since the selloff following President Donald Trump’s tariff announcements at the beginning of April. Longer-tenure Treasuries notched small gains, with the 30-year yield falling one basis point to 5.03%.

European stocks were little changed, while a gauge of Asian equities is on track for a sixth straight week of gains. Trading volumes were light across the board.

Bond markets this week have reflected investors’ concerns about ballooning US debt and deficits, which was amplified after Moody’s Ratings downgraded the nation’s top credit rating. Rising yields, particularly on longer-dated instruments, intensified investor concerns about the economic outlook amid a backdrop of elevated borrowing costs and ta riff-induced uncertainty.

Following the US House’s approval of Trump’s tax bill on Thursday, analysts are cautioning that an ongoing deterioration in the US government’s fiscal position will continue to weigh on riskier assets. The legislation, a multi-trillion dollar package that would avert a year-end tax increase at the expense of adding to the US debt burden, is now heading for a Senate vote.