US stocks fell sharply Friday after President Donald Trump threatened to impose steep new tariffs on the European Union, reigniting fears of a global trade war and rattling markets on both sides of the Atlantic.

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The S&P 500 slipped 0.4% in afternoon trading, positioning the benchmark index for its worst weekly performance in nearly two months. The Dow Jones Industrial Average dropped 132 points, or 0.3%, while the tech-heavy Nasdaq composite shed 0.6%, AFP reported.

Trump, posting on his Truth Social platform before markets opened, said trade talks with the EU were stalling and warned that “straight 50%” tariffs could take effect as soon as June 1.

The EU is among the US’s largest trading partners, and the announcement sent shockwaves through global markets.

European stocks took an immediate hit, with France’s CAC 40 plunging 1.7%. US markets opened lower in response, and losses deepened as the day progressed. Around 60% of stocks in the S&P 500 traded in the red.

Tech giant Apple fell 2.6% after Trump singled it out, saying he’s urged CEO Tim Cook to relocate iPhone production to the US Trump threatened that Apple would face tariffs of “at least 25%” on its products if it didn’t comply.

Trump has a history of calling out companies directly when frustrated with trade negotiations. Walmart previously drew his ire after saying tariffs would likely lead to higher prices for consumers. Trump responded that Walmart and China should “eat the tariffs.”

The uncertainty surrounding trade policy also prompted major retailers to revise their financial guidance. Deckers Outdoor, the parent of Hoka and Uggs, plunged 19.6% after it withheld full-year guidance, citing economic unpredictability, despite posting better-than-expected quarterly earnings.

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Ross Stores also removed its full-year forecast, with its CEO warning that continued high tariffs would hurt profitability, given that over half of the retailer’s goods come from China. Its stock dropped 11.1% even after beating earnings estimates for the quarter.

“The volatility of trade policies and the corresponding impact on the economy, the consumer, and our profitability is highly unpredictable,” said Ross CEO Jim Conroy.

Amid the turmoil, there were a few bright spots. Intuit jumped 8.4% after reporting robust earnings, helped by a strong tax season. The TurboTax and Credit Karma parent also raised its outlook for the year.

The bond market reflected investor unease. Yields on the 10-year Treasury note slipped to 4.51% from 4.54% the previous day, as investors sought safety. Earlier in the week, yields had risen amid concerns that tax cuts in Washington would balloon the national debt.

Higher yields typically dampen demand for stocks by increasing borrowing costs and offering more attractive returns on safer investments.

Global markets showed mixed reactions. Asian indexes closed before Trump’s tariff announcement, with Tokyo’s Nikkei 225 gaining 0.5% and Shanghai’s market declining by 0.9%.

Meanwhile, gold prices jumped 2.1% as investors flocked to safer assets in the face of renewed trade tensions.

Wall Street had recently rebounded close to its all-time highs after earlier losses tied to trade fears. The S&P 500 had been down as much as 20% from its record before recovering amid signs of easing tensions—until now.

US Stock Market Highlights: US stocks fell on Friday due to renewed trade tensions after President Trump targeted Apple and the EU. The Dow dropped 181 points, S&P 500 and Nasdaq fell 0.4% and 0.7%. Apple shares fell over 2%.

US stocks fell on Friday as renewed trade tensions rattled investors, following President Donald Trump’s latest remarks targeting Apple and the European Union.

The Dow Jones Industrial Average shed 181 points, or 0.4%, while the S&P 500 and Nasdaq Composite each dropped 0.4% and 0.7%, respectively.

Tech giant Apple saw its shares fall over 2% after Trump declared that iPhones sold in the United States must be manufactured domestically—or face a minimum tariff of 25%. It marked the first time the president has singled out a specific company as part of his escalating tariff campaign this year.

Trump also signalled that trade talks with the EU had stalled, calling for a flat 50% tariff on all EU imports from 1 June 2025.

Markets trimmed losses later in the session after reports suggested the White House did not interpret the president’s remarks as formal policy. However, the comments come just as trade tensions had begun to ease. Following a wave of sweeping tariffs imposed in April, Trump had paused the harshest duties for 90 days and announced provisional deals with both China and the UK—moves that had helped markets rebound. The S&P 500 only recently returned to flat for the year.

This latest drop compounds a tough week for equities, with the S&P 500, Dow and Nasdaq all down more than 2%.

US stocks were mixed Thursday but ended another down week as investors eyed potential progress on trade talks and President Trump lashed out at Fed Chair Jerome Powell after his stark picture of the economy under tariffs.

The Dow Jones Industrial Average (^DJI) fell 1.3%, or more than 500 points. The benchmark S&P 500 (^GSPC) rose 0.1%, and the tech-heavy Nasdaq Composite (^IXIC) slipped 0.1% after Wednesday’s tech-led sell-off.

Shares of UnitedHealth (UNH) tanked over 22%, dragging the Dow lower, after the health insurer cut its full-year profit forecast. UnitedHealth is the largest Dow component by weight.

Thursday marked the end of trading for the week with US markets closed for Good Friday. All three of the major averages closed the week lower, with the Nasdaq and Dow falling over 2.5%. The S&P 500 was down around 1.5% for the week.

Trump’s on-again, off-again feud with the Fed chair he appointed came back into the spotlight, as the president said Thursday that his “termination cannot come fast enough” and mused about replacing him.

Trump’s comments came after Powell, speaking in Chicago, issued his starkest warning yet on how tariffs could affect the US economy. The Fed chair said the central bank would likely face a “challenging scenario,” considering he expects the levies to exacerbate inflation and slow economic growth.

Read more: The latest on Trump’s tariffs

Powell also threw cold water on hopes the central bank would imminently slash interest rates as tariffs roll in, saying Fed officials will “wait for greater clarity” on Trump’s trade policy.

LIVE COVERAGE IS OVER

24 updates

A trader talks on the phone while working on the floor of the New York Stock Exchange at the opening bell on April 1, 2025.

The S&P 500 climbed on Tuesday in another volatile session as the market awaited clarity from President Donald Trump regarding his tariff policy rollout. Wall Street also faced pressure from weaker-than-expected economic data.

The broad market index added 0.38% to close at 5,633.07, while the Nasdaq Composite gained 0.87% and ended at 17,449.89. The Dow Jones Industrial Average slipped 11.80 points, or 0.03%, to settle at 41,989.96. The S&P 500’s whipsaw moves follow a similar pattern of trading from Monday. At its high on Tuesday, the broad market index climbed 0.7%, but the benchmark was down by nearly 1% at its session low.

The consumer discretionary sector was the top performer of the day. Shares of Tesla gained 3.6%, while Nike added 2%.

Investors got another sour reading on the economy Tuesday due to the threat of tariffs, with the Institute for Supply Management manufacturing survey coming in lighter than expected and in contraction territory. February’s job openings were also slightly below estimates, the Bureau of Labor Statistics said on Tuesday.

Traders work on the floor of the New York Stock Exchange at the opening bell in the Financial District of New York City on March 17, 2025.

Stocks sold off sharply on Friday, pressured by growing uncertainty on U.S. trade policy as well as a more grim outlook on inflation.

The Dow Jones Industrial Average closed down 715.80 points, or 1.69%, at 41,583.90. The S&P 500 shed 1.97% to 5,580.94, ending the week down for the fifth time in the last six weeks. The Nasdaq Composite plunged 2.7% to settle at 17,322.99.

Shares of several technology giants dropped, putting pressure on the broader market. Google-parent Alphabet lost 4.9%, while Meta and Amazon each shed 4.3%.

This week, the S&P 500 lost 1.53%, while the 30-stock Dow shed 0.96%. The Nasdaq declined by 2.59%. With this latest losing week, Nasdaq is now on pace for a more than 8% monthly decline, which would be its worst monthly performance since December 2022.

Stocks took a leg lower on Friday after the University of Michigan’s final read on consumer sentiment for March reflected the highest long-term inflation expectations since 1993.

Friday’s core personal consumption expenditures price index also came out hotter-than-expected, rising 2.8% in February and reflecting a 0.4% increase for the month, stoking concerns about persistent inflation. Economists surveyed by Dow Jones had been looking for respective numbers of 2.7% and 0.3%. Consumer spending accelerated 0.4% for the month, below the 0.5% forecast, according to fresh data from the Bureau of Economic Analysis.

“The market is getting squeezed by both sides. There is uncertainty around next week’s reciprocal tariffs hitting the major exporting sectors like tech alongside concerns about a weakening consumer facing higher prices hitting areas like discretionary,” said Scott Helfstein, head of investment strategy at Global X.

Helfstein added, however, that the news on inflation and consumer spending “was not that bad” and could simply represent a hiccup in near-term sentiment as investors struggle to understand the Trump administration’s new policies.

“Despite today’s sell-off and broader market volatility of the past few weeks, there have not been big inflows into money markets. It seems like a lot of investors are trying to ride this out,” he said.

The latest inflation report comes amid a flurry of tariff announcements from the White House, which have roiled the market in recent weeks. Investors are looking ahead to April 2, when President Donald Trump is expected to announce further tariff plans, for further clarity.

On Friday, Canadian Prime Minister Mark Carney told Trump that the Canadian government will implement retaliatory tariffs following Wednesday’s announcements. Bloomberg earlier reported that the European Union is identifying concessions it could make to Trump’s administration to reduce the reciprocal tariffs from the U.S.

Trump earlier this week announced a 25% tariff on “all cars that are not made in the United States,” a decision that hurt auto stocks and raised concerns of an economic slowdown.