US Stocks Fall As Trade Jitters Spur Flight To Bonds; S&P 500 Falls 1.1%: Markets Wrap

Global markets were rattled by President Donald Trump’s threats to impose aggressive tariffs on the European Union and Apple Inc., with stocks getting hit, the dollar sliding toward its lowest since 2023 and bonds joining gains in haven assets.

Equities dropped across the board, with the S&P 500 down 1.1% and the Stoxx Europe 600 Index sinking 1.3%. The iPhone maker led a selloff in tech giants, dropping about 3%. Benchmark 10-year Treasuries almost erased their losses for the week. The greenback fell against all of its developed-market peers, with traders seeking safety in currencies like Japanese yen and the Swiss franc as well as gold.

Trump threatened a sweeping 50% tariff on the European Union and a 25% levy on Apple if the company failed to move iPhone manufacturing to the US, reigniting investor fears about his trade agenda. The president said in a social media post that the higher charge on the EU would start on June 1 because “our discussions with them are going nowhere.”

The sudden shift underscores the ongoing risk that shifts in US policy can abruptly upend market dynamics at short notice. Markets had rebounded in recent weeks on optimism that Trump was softening his approach to the tariffs and investor attention had shifted to concerns about the ballooning US debt and deficits.

“It’s going to keep markets on edge,” said Aneeka Gupta, head of macroeconomic research at Wisdom Tree UK Ltd. “Markets were hoping news on tariffs had abated until at least the 90-day pause expired, but that’s clearly not the case. Uncertainties are here to stay. We’re in for a period of very high volatility.”

The S&P 500 headed toward its worst week since April 4. The Nasdaq 100 slid 1.3% Friday. The Dow Jones Industrial Average dropped 0.9%.

The yield on 10-year Treasuries declined three basis points to 4.5%. The Bloomberg Dollar Spot Index fell 0.5%.

The president’s missives represented a fresh round of trade brinkmanship, after indicating last week he was looking to wind down talks with partners over his April 2 duties, which he paused for 90 days to allow for negotiations. Trump’s attention this week has mostly been focused on a massive tax and spending package currently being considered by the US Congress. 

To Capital Economics, Trump’s threat of a 50% tariff on the EU from June may well turn out to be a “negotiating tactic” and seems “very unlikely” to be where tariffs settle over the long run.

“At this stage, we are not inclined to change our working assumption that tariffs on the EU will ultimately settle around 10% but this underlines that there are risks and that the road to an agreement could be rocky, the firm said.

• Visa Inc. and Mastercard Inc. fees are under fresh scrutiny from European Union antitrust enforcers, less than a decade after a series of probes ended with hefty fines and an agreement to cut some of their controversial levies.

• Workday Inc. projected subscription revenue in the current quarter in line with Wall Street estimates, disappointing investors looking for the software company to get a boost from new artificial intelligence features for its products.

• Intuit Inc. posted strong revenue growth following the end of the US tax season, suggesting the financial software company is finding success offering users more expensive services.

• Discount retailer Ross Stores Inc. pulled its full-year profit outlook due to heightened uncertainty caused by tariffs.

• Deckers Outdoor Corp. tumbled after the owner of Hoka running shoes and Ugg boots provided a disappointing fiscal first-quarter forecast. The company also declined to provide full-year guidance due to the current macro uncertainty.

• Nuclear power stocks rallied after Reuters reported that President Donald Trump will sign executive orders that aim to jumpstart the industry by easing the regulatory process on approvals for new reactors and strengthening fuel supply chains.

Some of the main moves in markets:

Stocks

• The S&P 500 fell 1.1% as of 9:45 a.m. New York time

• The Nasdaq 100 fell 1.3%

• The Dow Jones Industrial Average fell 0.9%

• The Stoxx Europe 600 fell 1.3%

• The MSCI World Index fell 0.8%

• Bloomberg Magnificent 7 Total Return Index fell 1.4%

• The Russell 2000 Index fell 1%

Currencies

• The Bloomberg Dollar Spot Index fell 0.5%

• The euro rose 0.4% to $1.1327

• The British pound rose 0.5% to $1.3490

• The Japanese yen rose 0.8% to 142.81 per dollar

Cryptocurrencies

• Bitcoin fell 1.9% to $109,007.79

• Ether fell 2.6% to $2,573.23

Bonds

• The yield on 10-year Treasuries declined three basis points to 4.50%

• Germany’s 10-year yield declined eight basis points to 2.56%

• Britain’s 10-year yield declined four basis points to 4.71%

Commodities

• West Texas Intermediate crude fell 0.4% to $60.97 a barrel

• Spot gold rose 1.6% to $3,346.46 an ouncen.