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Yahoo
a day ago
- Business
- Yahoo
Trump Hammers the Markets with New Scorched Earth Trade War on Apple and Europe
Donald Trump reignited his scorched-earth trade war on Friday, unleashing a fiery social media tirade that took aim at Apple and Europe with fresh tariff threats. In classic flip-flop fashion, the president is back on the offensive. Just weeks after hitting pause on his so-called 'reciprocal' tariffs amid market turmoil, he's doubling down with predictable results sending Dow Futures plunging by around 400 points in early trading. In blistering posts on Truth Social on Friday morning, Trump warned that Apple would face a 25 percent tariff unless it moves iPhone production to the U.S. He also said he is 'recommending' a 50 percent tariff on the European Union starting June 1, escalating tensions with the continent that is traditionally one of America's closest allies. The EU 'has been very difficult to deal with,' Trump wrote. 'Our discussions with them are going nowhere!' Increased tariffs on Europe would lead to huge effective taxes on luxury goods. 'We've had this de-escalation tailwind at the market's back for like six weeks now — and the market has had one of its best six-week stretches in the last 75 years — and a re-escalation of trade war rhetoric threatens that,' Ross Mayfield, an investment strategist, told CNBC. Trump's first call of order was to escalate his stand-off with Apple CEO Tim Cook after the tech giant signaled it would switch assembly of its iPhones for the U.S. market to India. The president threatened the company after Cook failed to bend the knee and was a notable absentee from the tech mogul road trip to the Mideast last week. The California giant's shares immediately fell 3 percent in premarket trading. After previously reversing tariffs on Apple goods, Trump said the tech company will face a 25 percent tariff if production for iPhones isn't shifted to the U.S. 'I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,' Trump wrote. 'If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S,' he added. 'Thank your for your attention to this matter!' His warning came days after Cook said that factories in India would soon supply the 'majority' of iPhones sold in the U.S., as the tech company attempts to swerve the tariffs Trump has slapped on Chinese-made products. Apple plans to source the 60 million iPhones sold annually in the U.S. from India by the end of 2026, according to the Financial Times. The newspaper also reported Friday that Foxconn, a key Apple supplier, is investing $1.5 billion to ramp up production of the company's best-selling product in India. According to Reuters, it's unclear if Trump can slap tariffs on an individual company. The very public warning came days after Trump said he told his 'friend' Cook that he 'had a little problem' with him looking to build Apple products in India. 'I said to Tim… 'Tim look, we treated you really good…India can take care of themselves ... we want you to build here,'' Trump said. The Daily Beast has contacted Apple for comment. Trump took aim at the EU some 30 minutes later, over what he said was stalled trade negotiations between the key trading partners. 'The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with,' the president said. 'Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable,' he ranted. Trump added: 'Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States.' Top U.S. and EU trade officials were expected to hold talks Friday to assess progress in their ongoing tariff negotiations, the Wall Street Journal reported. Officials have a prearranged call at 11:30 a.m. and the EU won't comment on Trump's threats until after that call takes place said, an official said. The outburst came after weeks of market chaos triggered by Trump's sweeping 'reciprocal tariffs' on more than 180 countries. He announced a 90-day pause just a week later, granting a brief window for trade deal negotiations to take place between every country besides China—though the U.S. and China had finally agreed to a 90-day truce beginning May 14 to significantly lower tariffs.
Fast Company
2 days ago
- Business
- Fast Company
Chip stocks and Big Tech shares jump on Trump tariffs ruling, Nvidia's earnings, and Elon Musk news
Stock markets are moving higher in premarket trading on Thursday as of the time of this writing. Two groups of stocks are doing particularly well: Big Tech's Magnificent Seven and major chipmaker stocks. Shares in one stock that crosses over into both groups—Nvidia Corporation (Nasdaq: NVDA)—are currently up 6% in premarket trading. But NVDA isn't the only chip and tech stock that is up. Other major technology companies like Apple Inc. (Nasdaq: AAPL), Inc. (Nasdaq: AMZN), and Broadcom Inc. (Nasdaq: AVGO) are also trending significantly higher. Why are Big Tech and chipmaker stocks surging this morning? It comes down to three pieces of news. Here's what you need to know. Markets and Big Tech jump on Trump tariff court ruling As of the time of this writing, market futures are trending higher this morning. S&P Futures are currently up 1.1%, Dow Futures are up 0.56%, and Nasdaq Futures are up 1.6%. The main reason for this broad surge in futures is a ruling issued by the U.S. Court of International Trade on Wednesday that declared President Trump's 'Liberation Day' tariffs illegal. As CNBC notes, the three-judge panel ruled that the mechanism Trump used to invoke the tariffs without Congressional approval—the International Emergency Economic Powers Act (IEEPA)—doesn't grant the president the authority to impose universal tariffs. The judges declared that 'the Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,' and ordered not only a permanent halt to the tariffs but future modification to them as well. As Fast Company previously reported, multiple states and small businesses sued over the implementation of the tariffs. The judges also ruled against the Trump administration's implementation of tariffs against Canada, Mexico, and China based on the importation of fentanyl into the United States, saying those separate tariffs 'fail because they do not deal with the threats set forth in those orders.' Not all of Trump's tariffs have been ruled unlawful. The president's tariffs on aluminum and steel can remain because they were not implemented under the IEEPA. The Court of International Trade gave the Trump administration 10 days to put a halt to the tariffs ruled illegal, but the Trump administration has already appealed the ruling, which may very likely end up before the Supreme Court. While the tariff situation is likely to continue to play out in the courts in the weeks ahead, news of the ruling has lifted futures—and Big Tech stocks. The companies that make up Big Tech's Magnificent Seven—Google, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—faced particular challenges from the tariffs since many of their products are sourced from China, the country that received the highest tariffs. If not directly sourcing their products from China, they still rely on supplies or components from the country, such as servers, that the tariffs have threatened to make acquiring more expensive. Here's how Big Tech's Magnificent Seven stocks are currently trading based on the news: Alphabet Inc. (Nasdaq: GOOG): up 1.29% Inc. (Nasdaq: AMZN): up 2.5% Apple Inc. (Nasdaq: AAPL): up 2.4% Meta Platforms, Inc. (Nasdaq: META): up 1.4% Microsoft Corporation (Nasdaq: MSFT): up 0.8% NVIDIA Corporation (Nasdaq: NVDA): up 6% Tesla, Inc. (Nasdaq: TSLA): up 2.49% Elon Musk's time in the Trump administration 'comes to an end' One of the Magnificent Seven stocks—Tesla—is certainly getting a boost from the ruling against Trump's tariffs, but there's likely another reason why the stock is trending higher today, too. That reason is Elon Musk. On Wednesday, the CEO took to his social media platform X to announce that his time in the Trump administration has come 'to an end.' 'As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending,' Musk wrote, adding, 'The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government.' Musk joined the administration in January to head the controversial Department of Government Efficiency (DOGE). But his work with the administration and DOGE has cost his most well-known company, Tesla, dearly. Musk's involvement in politics has alienated many of the carmaker's fans across the globe, leading to plummeting Tesla sales in many key markets, including those in Europe and the United States. News that he is leaving DOGE and the Trump administration is something Tesla investors have been waiting to hear for a long time—and it's contributing to TSLA stock moving higher this morning. Nvidia's earnings lift chip stocks Finally, while many chipmaker stocks are also getting a lift today due to the Trump tariff ruling news, chipmaker and chipmaker-adjacent stocks, including chip machine maker ASML Holding N.V. (Nasdaq: ASML), are also seeing a boost thanks to Nvidia's Q1 fiscal 2026 earnings results, which the company announced yesterday. Nvidia reported revenue of $44.1 billion, which was up 12% from the previous quarter and 69% from the same quarter a year earlier. It also reported data center revenue of $39.1 billion, a 10% rise from the previous quarter and a 73% rise from the same quarter a year ago. As CNBC notes, the better-than-expected earnings results have sent NVIDIA Corporation shares higher. Currently, they are up 6%. But since Nvidia is often seen as a bellwether for other chipmakers and chipmaker-adjacent stocks, companies operating in those spaces are also seeing their shares rise this morning on Nvidia's news. Moreover, as Nvidia's technology has been playing a key role in powering the artificial intelligence (AI) revolution, its earnings beat was seen as a sign that demand for AI remains strong. All in all, it's looking like a positive start to the morning in the markets, especially for stocks that operate in the Big Tech and chipmaker sectors.
Business Upturn
3 days ago
- Business
- Business Upturn
Global markets rally as U.S. court blocks Trump-era tariffs; AI earnings also boost sentiment
Global equity markets opened higher on Thursday, buoyed by sharp gains in U.S. futures after a landmark federal court ruling blocked former President Donald Trump's authority to impose trade tariffs. The move was viewed as a significant de-escalation of trade-related risks, further supported by strong quarterly results from artificial intelligence major Nvidia. A U.S. federal court ruled that Donald Trump did not have the authority to set tariffs unilaterally, effectively blocking the so-called 'Liberation Day' tariffs introduced during his presidency. The Trump administration has already appealed the decision. The White House issued a sharp response, stating, 'It's not for unelected judges to decide how to properly address a national emergency.' This legal development was interpreted by markets as a rollback of protectionist trade policies, leading to a relief rally in equities. U.S. stock index futures surged in response: Dow Futures jumped 500 points (+1.19%) to 42,599 Nasdaq Futures gained 400 points (+1.88%) to 21,718 Russell 2000 Futures rose 41 points (+1.98%) to 2,109 The positive momentum spilled over into global markets: Germany's DAX Futures were up 190 points (+0.79%) UK's FTSE Futures added 62 points (+0.70%) Japan's Nikkei Index gained 529 points (+1.40%) to 38,252 South Korea's KOSPI rose 30 points (+1.14%) Taiwan's Taiex Futures climbed 141 points (+0.67%) India's GIFT Nifty was up 57 points (+0.23%) at 24,820 (adjusted). However, Hang Seng Futures in Hong Kong edged slightly lower by 24 points (-0.10%). This rebound comes after a slightly negative close on Wall Street on the previous day: Dow Jones closed at 42,099, down 245 points (-0.58%) Nasdaq ended at 19,101, lower by 98 points (-0.51%) Analysts noted that the combination of strong AI earnings and legal checks on unilateral tariff powers has infused fresh optimism across equity markets globally. News desk at
Business Upturn
19-05-2025
- Business
- Business Upturn
Global markets: Asian markets slip; US futures dip after Moody's downgrade, Europe trades flat
Global markets opened on a cautious note as Asian equities traded in the red, reacting to Moody's downgrade of the U.S. investment grade rating, which has sparked fresh concerns around economic growth and rising debt levels. Meanwhile, European futures are holding steady in a narrow range. In the U.S. futures market, all major indices are in the red: Dow Futures : 42,400 (▼254 pts / -0.60%) Nasdaq Futures : 21,201 (▼224 pts / -1.05%) US Small Cap 2000 Futures: 2,096 (▼18 pts / -0.84%) European markets are trading mixed: DAX Futures (Germany) : 23,820 (▲4 pts / +0.02%) FTSE Futures (UK): 8,687 (▼10 pts / -0.11%) Asian markets are broadly lower: Hang Seng Futures : 23,012 (▼253 pts / -1.03%) Taiex Futures (Taiwan) : 21,653 (▼176 pts / -0.80%) KOSPI (South Korea) : 2,598 (▼29 pts / -1.11%) Nikkei (Japan) : 37,609 (▼144 pts / -0.38%) Gift Nifty (India): 25,061 (▼18 pts / -0.07%, adjusted) The cautious sentiment follows a positive close on Wall Street yesterday, where the Dow Jones gained 332 points (+0.78%) and the Nasdaq rose 99 points (+0.52%), although futures suggest those gains may be pared back in today's session. Markets are likely to remain volatile as investors digest the implications of the U.S. credit rating move and await further macroeconomic cues. News desk at
Yahoo
10-05-2025
- Business
- Yahoo
Terrible Sign for Stock Market After Fed's Brutal Trump Tariff Warning
The stock market showed little signs of recovery from the Trump administration's chaotic tariff rollout after the Federal Reserve issued a bleak outlook on Wednesday. A CNN expert warned Wednesday night that 'bad news is coming' as the markets took another beating. Stocks plummeted after Federal Reserve Chairman Jerome Powell said the Fed was keeping its eye on the 'highly uncertain' economic effects of Trump's policies in a speech to the Economic Club of Chicago Wednesday afternoon. 'As we learn more, we will continue to update our assessment. The level of the tariff increases announced so far is significantly larger than anticipated,' he said. 'The same is likely to be true of the economic effects, which will include higher inflation and slower growth.' Powell's remarks sent the Dow tumbling 700 points or 1.73 percent, while the S&P 500 slid 2.24 percent and the tech-heavy Nasdaq Composite fell by over 500 points or 3.07 percent. Stock futures did rise after the sell-off—but only slightly. Dow Futures climbed 0.36 percent, S&P 500 Futures grew 0.45 percent, and Nasdaq Futures jumped 0.56 percent. Wedbush Securities analyst Dan Ives told CNN's Erin Burnett OutFront on Wednesday that he was particularly concerned about Nvidia stock, which fell 6.87 percent. 'The unfortunate reality: Today is a dark day,' he said. 'Nvidia, the golden child of the market… got cut at the knees. Because essentially, the government—if you look at it, you could call it 'restrictions.' It's a blockade into China. It's a 'Do not enter' sign into China for U.S. tech.' In his remarks, Powell referenced the 1986 film Ferris Bueller's Day Off: 'As that great Chicagoan Ferris Bueller once noted, 'Life moves pretty fast.' For the time being, we are well-positioned to wait for greater clarity before considering any adjustments to our policy stance.' Powell may have been nodding to a scene in the movie where a high school teacher explains why the Smoot-Hawley Tariff Act of 1930 failed. A clip of that scene went viral when President Donald Trump first announced his sweeping 'Liberation Day' tariffs. 'The reality is, Powell, he's seeing the numbers,' Ives said. 'And basically, what the market is showing is that bad news is coming.' Over the weekend, the Trump administration set the stock market up for another whirlwind week with baffling statements on exemptions to the sky-high retaliatory taxes and additional levies on semiconductors. Trump said in a Truth Social post Sunday that there was 'no tariff exception' after U.S. Customs and Border Protection published guidelines quite literally titled 'Reciprocal Tariff Exclusion for Specified Products,' which indicated that a wide range of tech devices and parts were exempted from the 125-percent tariff on China. That same day, Commerce Secretary Howard Lutnick confused market watchers even further by saying any tax exemptions were only temporary, as a separate 'semiconductor tariff' was already in the cards.
