Apple and EU Targeted in New Trade Salvo; Volatility Surges Across Tech and Consumer Stocks
📉 Market Snapshot: Red Across the Board
Wall Street opened sharply lower on Friday as President Trump stunned markets with fresh trade threats, recommending 50% tariffs on the European Union and warning that Apple would face 25% duties unless iPhones are made in the U.S.
By mid-morning:
- Dow Jones dropped 395 points (-0.94%)
- S&P 500 declined 1.18%
- Nasdaq Composite slumped 1.53%
The CBOE Volatility Index (VIX) — often called Wall Street’s “fear gauge” — spiked to a two-week high, reaching 24 points.
🍏 Apple, Tech, and Consumers Lead Declines
Apple was among the hardest hit, falling 2.7% to a two-week low after Trump’s post on Truth Social, which warned of steep tariffs unless the company reshored iPhone production.
Major tech and consumer stocks bore the brunt, with:
- Amazon and Nvidia each down ~2%
- Nike falling 2.5%
- Best Buy dropping 1.7%
- Deckers Outdoor plunging 21% after issuing a weak forecast and citing tariff uncertainty as a key risk
The semiconductor sector, a key pillar of the recent rally, lost nearly 2% on the day.
🏛️ Politics, Policy, and the Debt Downgrade
This market turmoil follows a rocky week triggered by:
- Moody’s downgrade of the U.S. sovereign credit rating from Aaa to Aa1
- Rising Treasury yields, which reflected heightened concerns over mounting U.S. debt
The Republican-led House narrowly passed a major tax and spending bill aligned with Trump’s agenda on Thursday. It now moves to the Senate, where GOP lawmakers hold a slim majority (53–47).
Investors are watching closely, as the proposed fiscal expansion and protectionist trade policies create a combustible mix for long-term U.S. growth and stability.
đź’ą Bright Spot: Intuit Surges
In an otherwise bruising session, Intuit shone brightly. The tax software giant surged 8.7% to an all-time high after it projected strong Q4 revenue and profit, offering a glimmer of optimism amid broader macroeconomic concerns.
âś… Conclusion: Markets Braced for Prolonged Volatility
President Trump’s renewed trade threats — particularly targeting U.S. allies and megacap corporations like Apple — have revived investor anxiety and sent risk assets reeling. Combined with soaring debt levels, political infighting, and rising yields, markets are entering a volatile and uncertain phase.
All 11 sectors in the S&P 500 ended lower, marking one of the broadest-based selloffs in weeks. While some high-quality names like Intuit offer upside surprises, the overall trend suggests that traders should prepare for more policy-driven turbulence ahead.
As earnings season winds down and macro data takes center stage, risk management and sector rotation will be key themes in navigating what’s shaping up to be a choppy summer on Wall Street.
