Stocks Hit as Trump is Not Looking for an EU Deal – US Market Wrap

Trump’s threats to impose aggressive tariffs on the European Union and Apple shook Wall Street, sending stocks plunging and the dollar to its lowest level since December 2023.

The S&P 500 fell for the fourth day in a row after Trump stated that he is “not looking for a deal” with the EU and that tariffs would be set at 50%. Earlier Friday, Treasury Secretary Bessent stated that the US could strike “several large” trade deals in the coming weeks, providing some relief to the market. Apple fell 3%, leading the way in declines among tech giants. United States Steel surged 21% after Trump announced his support for a partnership with Nippon Steel.

Benchmark 10 years. Treasuries rose as Bessent said regulators may relax a capital rule on the market, potentially lowering yields. Haven currencies such as the Japanese yen and the Swiss franc rose alongside gold.

Trump also stated that the 25% tariff he threatened against Apple earlier Friday would be aimed at device makers such as Samsung Electronics to encourage them to move their manufacturing to the United States. The president stated in a social media post that the increased charge against the EU would begin on June 1 because “our discussions with them are going nowhere.”

The unexpected move highlights the ongoing risk that shifts in US policy can abruptly upend market dynamics. Markets had recovered in recent weeks on expectations that Trump would soften his approach to tariffs, and investor attention had shifted to concerns about the US debt and deficits.

The S&P 500 fell 0.7%. The Nasdaq 100 declined 0.9%. The Dow Jones Industrial Average declined 0.6%. The Stoxx Europe 600 Index fell 0.9%, with automakers among the biggest losers.
The yield on 10-year Treasuries fell two basis points to 4.51%. The dollar dropped 0.8%.