Wall Street slides as Trump's tariff threats triggers market uncertainty
U.S. stocks fell on Friday, notching a weekly loss, after President Donald Trump recommended 50% tariffs on European goods, reopening a new front in global trade tensions and unleashing a fresh wave of
market uncertainty
.
All three main
Wall Street indexes
pared early losses but each still ended lower and shed more than 2% for the week. Technology, communication services and consumer discretionary stocks were the biggest losers of the S&P 500's 11 subsectors. Utilities, consumer staples and energy stocks gained.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Oldest Stars Who Are Still Alive And Often Forgotten
I Am Famous
Undo
Apple touched a two-week low and finished down 3% after Trump warned the iPhone-maker it could face potential 25% tariffs on phones sold to U.S. customers but not manufactured in the country.
Treasury yields eased from multi-month highs, falling 4.4 basis points to 4.509% for the benchmark U.S. 10-year note.
"If I were to put a headline on today's story, it would be 'Here We Go Again!'" said James St. Aubin, chief investment officer at Ocean Park Asset Management in Santa Monica, California.
Live Events
"This is Trump turning on the temperature on the tariff conversation with the EU and Apple. The markets were hoping that the worst was behind us when it comes to the tariff rhetoric. But in reality, there's still some smoldering embers when it comes to the tariff talk," St. Aubin added.
The Dow Jones Industrial Average fell 256.02 points, or 0.61%, to 41,603.07, the S&P 500 lost 39.19 points, or 0.67%, to 5,802.82 and the Nasdaq Composite lost 188.53 points, or 1.00%, to 18,737.21.
For the week, the Dow lost 2.47%, the S&P 500 fell 2.61%, and the Nasdaq shed 2.48%.
U.S. Treasury Secretary Scott Bessent said Trump did not believe the EU's trade offers were of sufficient quality. He also said he hoped the threat of fresh tariffs would "light a fire under the EU" in negotiations.
Most megacap and growth stocks fell, including Amazon , Nvidia and Meta Platforms - which all lost more than 1%. Tesla ended down 0.5%.
The
CBOE Volatility Index
, Wall Street's "fear gauge," hit a more than two-week high and finished up 10%. Semiconductor stocks dropped 1.5%.
Deckers Outdoor
slumped nearly 20% after the maker of UGG boots forecast first-quarter net sales below estimates and said it would not provide annual targets due to tariff-led macroeconomic uncertainty. Sportswear maker Nike dropped 2.1%.
Volume on U.S. exchanges was 17.67 billion shares, compared with the 17.73 billion average for the full session over the last 20 trading days.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
36 minutes ago
- Mint
X factor: The rise and fall of Elon Musk as a political figure
Elon Musk has officially resigned from the US Department of Government Efficiency (DOGE). Although his role was only temporary and departure was not surprising, it follows his criticism of President Donald Trump's tax bill. The 'Big Beautiful Bill' would not improve America's finances, he said, and will undermine his efforts to cut back on unnecessary government spending. Was there a clear divide between Trump and Musk? Only seven months ago, at his victory speech on 6 November, Trump spent four minutes praising Musk. 'A star is born—Elon!" said Trump. Musk had invested nearly a quarter of a billion dollars in Trump's campaign, which could explain his influence on the Trump administration. It was possibly the most astute investment Musk ever made. He oversaw Trump's DOGE and also shaped a far-right discourse both domestically and internationally. Also Read: Electric debacle: Tesla's troubles started before Musk wore the MAGA cap Musk attempted to involve himself in several European political issues—in Germany and the UK especially. In February, Time magazine portrayed Musk as 'President Musk." Its cover illustration showed him seated at the Resolute Desk in the White House. However, it is evident that Musk has now drifted to the margins of Trump's world. 'Elon is from South Africa—I don't want to get Elon involved," Trump told his South African counterpart, Cyril Ramaphosa, during a discussion at the White House recently. On 19 May, an analysis titled 'Why has Elon Musk vanished from the spotlight?' was published by Politico, which noted that Trump was posting messages about Musk on his Truth Social platform at an average of four times a week in February and March, but stopped doing so in April. Musk was included in nearly daily fund-raising emails sent by Trump's campaign team. However, save for a single email in May, this abruptly stopped in early March. Trump's top advisors and official White House accounts also stopped posting photos and content mentioning Musk. Musk, whose business empire includes Tesla, SpaceX and X, seemed to have got the drift. Amid mounting investor worries, he announced a major reduction in political spending. This was a public indication of the billionaire turning his focus back to his businesses. Also Read: Tesla's slump: When social intelligence clashes with artificial intelligence The main source of Musk's fortune, Tesla, has lost sales globally and suffered severe brand damage as a result of his political activities. His expressions of support for the far-right anti-immigration AfD party in Germany, for example, were noted across Europe. Tesla's sales in Europe dropped 49% in April, indicating a backlash against him. Towards the end of that month, Tesla reported a 71% dip in profits. In a call with Tesla investors, Musk said that he would begin stepping back from his position at DOGE in May. In the US and abroad, Tesla dealerships have been the target of protests and vandalism. Musk's move to impose harsh employment and spending cuts within the federal government on behalf of the Trump administration was dubbed 'one of the greatest brand destructions" ever by Scott Galloway, professor of marketing at New York University's Stern School of Business. According to some surveys, most respondents disapproved of the way Musk and DOGE have handled federal government employees and slashed jobs. About 60% of respondents in a nationwide study conducted by Marquette University Law School last month had a negative opinion of Musk, while 38% had a positive opinion. The study found approval of Musk's DOGE handling at 41% and disapproval at 58%. Also Read: The US should stay away from gimmicks and tackle its real fiscal problem Musk may have recently met his political Waterloo in Wisconsin, where he contributed at least $3 million to making the Wisconsin Supreme Court campaign the most costly in US history. He even personally appeared in Green Bay sporting a cheese-head cap, a favourite among supporters of the Green Bay Packers, an American football team. But the Republican candidate he backed lost by a 10% margin. The Democrats mobilized people by calling it a 'People versus Musk' contest to highlight his intervention. Frankly, Musk's accountability has been non-existent, his loyalties seem inconsistent and his political intentions unclear. Trump might be well aware of this. Musk stood for six hours to shake hands with Democrat Barack Obama during his 2008 presidential campaign. In 2014, Musk described himself as 'somewhere in the middle, fiscally conservative and socially liberal." He even advocated that Trump 'hang up his hat and sail into sunset" in 2022, arguing that he was too old to seek re-election. But then he started to tilt Republican. Also Read: A trade arrangement that leaves out the US could trump Trump's tariffs Thus, it was perhaps inevitable that Trump would grow weary of Musk. Since the president is accustomed to generating all his popularity himself, it would be easy for him to assume he needs nobody's help on that count. Then there is also the matter of Musk's unpopularity, which Trump may not want rubbing off on his own standing. However, Musk will still hold billions of dollars once Trump's term is over, not to mention the power of his social media platform. In the political sphere, his legacy may be a handy list of what the ultra-rich should do and not do. Or maybe he has left America's business class a model that no one else would dare imitate. The author is professor of statistics at Indian Statistical Institute, Kolkata.
Time of India
36 minutes ago
- Time of India
Trump tariff hike threatens to impact $5 billion engineering goods exports: EEPC India
New Delhi: The proposed 50% tariff on all foreign steel and aluminium by US President Donald Trump could hurt India's engineering exports, as these metals and their derivatives account for nearly a quarter of the country's total engineering goods shipments to the US. The annual export of steel, aluminium and their derivatives to the US currently stand at around $5 billion. The 25% tariffs imposed by the US on steel imports (as per the proclamation order dated on 18th March 2025) have created a challenging environment for Indian steel exporters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo Although India's direct steel exports to the US are relatively low, the tariffs have led to increased global competition and price pressures. The tariffs have also resulted in a shift in trade flows. 'In case the US goes ahead with its plan and impose a 50% tariff on steel, aluminium and their derivatives, exports of these key items will become costlier leading to a likely dip in shipments," said Pankaj Chadha, Chairman, EEPC India, in a statement. Live Events Chadha highlighted that the UK through its trade deal with the US recently got exemptions from 25% tariff on steel and aluminium and suggested that India should also ask for the same kind of waiver during the ongoing bilateral trade agreement (BTA) negotiations with the US. "This is perhaps not the opportune time to introduce such unilateral tariff especially when BTA negotiations are going on. It can make the work of the negotiators tricky. The proposed tariff increase by the Trump administration is likely to impact the engineering exports which are about $5 billion under this head," the EEPC India Chairman said.
The Hindu
37 minutes ago
- The Hindu
India, U.S. desire to give preferential market access to businesses; talks on for trade pact: Goyal
India and the U.S. desire to give preferential market access to each other's businesses and teams of both the countries are working together on the proposed bilateral trade agreement, Commerce Minister Piyush Goyal has said. In February, U.S. President Donald J. Trump and Prime Minister of India Narendra Modi announced plans to negotiate the first tranche or phase of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by fall (September-October) of 2025. It is aimed at more than doubling the bilateral trade to $500 billion by 2030 from the current level of $191 billion. "Both countries are committed to work together, both countries desire to give preferential access to each other's businesses and we are working towards the bilateral trade agreement," Mr. Goyal told reporters in Paris. Mr. Goyal is here on an official visit to hold talks with French leaders and business representatives to boost trade and investments. When asked about an announcement of Mr. Trump to double tariffs on steel and aluminium to 50%, he also said that the two countries will continue to work together to resolve all these issues bilaterally. "Let us wait and watch ...both the U.S. and India share good relations and we will continue to work together to resolve all these issues bilaterally," he said. Trade experts have stated that the further increase in the import duty by the Trump administration would impact Indian exporters, particularly those engaged in value-added and finished steel products and auto-components. On May 30, Mr. Trump announced that he would double the existing 25% tariffs on steel and aluminium imports from June 4. Mr. Trump originally invoked this provision in 2018 to set the 25% tariff on steel and 10% on aluminium. He raised tariffs on aluminium to 25% in February 2025. In 2024-25, India exported $4.56 billion worth of iron, steel, and aluminium products to the U.S., with key categories, including $587.5 million in iron and steel, $3.1 billion in articles of iron or steel, and $860 million in aluminium and related articles. India has already issued a formal notice at the World Trade Organization (WTO), reserving its rights to impose retaliatory tariffs on U.S. goods in response to the earlier steel tariffs. A team of U.S. officials is visiting India this week for discussions on the proposed interim trade agreement between the two countries. The visit gains importance as India and the U.S. are likely to agree on an interim trade agreement by the end of June, with New Delhi pushing for full exemption from the 26% reciprocal tariff on domestic goods. India's chief negotiator, Special Secretary in the Department of Commerce Rajesh Agrawal, last month had concluded his four-day visit to Washington. He held talks with his U.S. counterpart on the proposed agreement. Mr. Goyal too was in Washington to give an impetus to trade talks. There is a possibility that both sides agree on an interim trade deal before the first tranche. Also read | U.S. remains India's largest trading partner for fourth consecutive year in 2024 -25: Government data The U.S, remained India's largest trading partner for the fourth consecutive year in 2024-25, with bilateral trade valued at $131.84 billion. The U.S, accounts for about 18% of India's total goods exports, 6.22% in imports, and 10.73% in the country's total merchandise trade. Talking about India's free trade pact with four-European nation bloc EFTA, Mr. Goyal said $100 billion FDI (foreign direct investment) commitment under the agreement does not include money coming into stock market through FIIs. "This is solid FDI coming into the country... This USD 100 billion of FDI comes with technologies... It will (also) catalyse nearly USD 500 billion of investments roughly. With this investment, the whole ecosystem gets created, hotels come up, infrastructure comes up, power and water is utilised. The whole ecosystem will add much more to the economy. So it's a massive investments that we are looking coming through this EFTA agreement," he added. The implementation process of this pact is progressing fast and is expected to come into force before the end of this year. The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under the pact, India has received an investment commitment of $100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates and cut and polished diamonds at lower or zero duties. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland. When asked if India would have similar arrangement in the proposed trade pact with the 27-nation bloc EU, he said: "The member countries are large investors in india, so we may not go that ground in our FTA with EU."
