Trump's Tariff Threat Sparks Wall Street Tumble

U.S. stocks experienced a weekly decline after President Trump proposed 50% tariffs on European goods, escalating trade tensions. The Dow, S&P 500, and Nasdaq all ended lower. Major companies like Apple and Nike were impacted, while Treasury yields fell. The CBOE Volatility Index hit a two-week high.

Wall Street witnessed a significant downturn as U.S. stocks tumbled on Friday, concluding a week of losses. This decline came after President Donald Trump recommended imposing a 50% tariff on European goods, reigniting global trade tensions and fostering market unease. Despite initial recoveries, major indexes ended the week with losses exceeding 2%.

Among the affected stocks, Apple touched a two-week low. The tech giant was warned by Trump of potential 25% tariffs on phones sold in the U.S. but manufactured outside the country. Meanwhile, Treasury yields saw a decrease, with the benchmark U.S. 10-year note falling by 4.4 basis points to 4.509%.

James St. Aubin, chief investment officer at Ocean Park Asset Management, remarked, "This is Trump turning the heat on the tariff dialogue with the EU and Apple." The market had hoped for a resolution to trade tensions, yet uncertainty persists. Major growth stocks, including Amazon, Nvidia, and Meta Platforms, declined, and the CBOE Volatility Index, a measure of market anxiety, increased sharply.

(With inputs from agencies.)