US Stocks Fall as Trump Threatens 50% Tariffs on EU

US stocks took a sharp drop on Friday after President Donald Trump announced a threat to impose 50% tariffs on the European Union, which could be implemented as early as June 1. The move was seen as an escalation of the ongoing trade war, with the S&P 500 losing 0.7% and the Dow Jones Industrial Average dropping 256 points.

Key Takeaways:

• Trump threatened to impose 50% tariffs on the European Union, which could be implemented as early as June 1, citing that trade talks "were going nowhere."
• The S&P 500 lost 0.7% and the Dow Jones Industrial Average dropped 256 points, marking its worst week in seven.
• Major technology companies, including Apple, were heavily affected by the tariff threat, with Apple dropping 3% and being the heaviest weight on the S&P 500.
• Intuit, the company behind TurboTax and Credit Karma, was a rare bright spot, rising 8.1% after reporting stronger profits and raising its revenue and profit forecasts.
• Several companies, including Deckers Outdoor and Ross Stores, withdrew their financial forecasts for the full year due to the ongoing uncertainty surrounding the tariff war and its impact on their businesses.

Statistics:

• The S&P 500 fell 39.19 points to 5,802.82.
• The Dow Jones Industrial Average dropped 256.02 to 41,603.07.
• The Nasdaq composite sank 188.53 to 18,737.21.
• Treasury yields fell to 4.51% from 4.54% late Thursday.
• Apple dropped 3% and was the heaviest weight on the S&P 500.
• Intuit rose 8.1% after reporting stronger profits and raising its revenue and profit forecasts.

Sources:

• STAN CHOE Associated Press NEW YORK AP Writer Matt Ott (no date)
• Jiang Junzhe (no date)