U.S. stock markets experienced a decline following President Donald Trump’s announcement of potential 50% tariffs on the European Union, which could be enforced as early as next week. The S&P 500 index decreased by 0.7% on Friday, marking its weakest performance in the last seven weeks. Concurrently, the Dow Jones Industrial Average fell by 0.6%, while the Nasdaq composite dropped by 1%.
European stocks suffered more significantly in response to Trump’s assertion that the trade discussions were stalling. An additional impact was observed on Apple’s stock after Trump hinted at implementing a 25% tariff on smartphones manufactured outside the U.S. Initially, traders reacted by pulling back, though they reassessed the situation later in the day, questioning whether Trump’s declarations were part of his negotiation strategies.
On Friday, the market closed with the S&P 500 declining by 39.19 points, equating to a 0.7% drop, landing at 5,802.82. The Dow Jones Industrial Average saw a reduction of 256.02 points or 0.6%, concluding at 41,603.07. Meanwhile, the Nasdaq composite registered a decline of 188.53 points or 1%, finishing at 18,737.21. The Russell 2000 index, representing smaller companies, decreased by 5.71 points or 0.3%, closing at 2,039.85.
Throughout the week, the S&P 500 fell by 155.56 points or 2.6%. The Dow recorded a loss of 1,051.67 points or 2.5%, and the Nasdaq composite dropped by 473.89 points or 2.5%. Additionally, the Russell 2000 decreased by 73.40 points or 3.5%. For the year thus far, the S&P 500 has declined by 78.81 points or 1.3%, while the Dow is down 941.15 points or 2.2%. The Nasdaq has lowered by 573.59 points or 3%, and the Russell 2000 has decreased by 190.31 points or 8.5%.