Fear Returns to Wall Street as Trump Threats Push Stocks Down

Although the main US indices managed to partially recover their morning losses, they ended the day with significant declines. The S&P 500 fell for the fourth day in a row on Friday, losing 0.7% this time, the Nasdaq 100 fell 0.9% and the Dow Jones fell 0.6%. In Europe, the Stoxx 600 fell 0.9%, with a clear sell-off among automotive companies – particularly exposed to tariffs.

For the week, the Dow Jones fell 2.47%, the S&P 500 fell 2.61% and the Nasdaq fell 2.48%. Technology, communications services and consumer discretionary companies were among the hardest hit, while energy, utilities and consumer discretionary stocks rose.

Apple shares fell 3% to a two-week low after Donald Trump warned the company could face a 25% tariff on iPhones sold in the U.S. if they are not manufactured domestically .

Yields on 10-year U.S. Treasury bonds fell 4.4 basis points to 4.509%, retreating from multi-month highs.

According to US Finance Minister Scott Bessent, Donald Trump has deemed the EU's trade proposals insufficient and hopes that pressure in the form of new tariffs will speed up negotiations with Brussels.

Among the largest companies, Amazon, Nvidia and Meta all fell more than 1%. Tesla fell 0.5%. The VIX volatility index, known as Wall Street's fear gauge, rose 10% to its highest level in more than two weeks.

Chipmakers also fared poorly, with the semiconductor index down 1.5 percent. Deckers Outdoor, owner of the UGG brand, also fell nearly 20 percent after forecasting disappointing quarterly results and no full-year outlook, citing uncertainty over potential tariffs. Sportswear maker Nike lost 2.1 percent.

Turnover on US stock exchanges amounted to 17.67 billion shares – slightly below the average of the last 20 sessions.

U.S. new home sales in April came in at an annualized rate of 743,000, down from an expected 695,000. A month earlier, sales were 670,000, revised from 724,000.

Oil prices on global markets rose slightly. June WTI contracts rose 0.67 percent to $61.60 per barrel. July Brent crude contracts rose 0.71 percent to $64.90 per barrel.