Dow Jones futures fell sharply Friday morning, along with S&P 500 and Nasdaq futures, as President Donald Trump threatened a 25% tariff on Apple and a 50% tariff on the European Union.
President Trump said he would slap a 25% tariff on Apple if it doesn't make the iPhone in the U.S.
"I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," Trump said on Truth Social. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S."
Apple CEO Tim Cook had planned to shift more iPhone production to India from China. Building them in the U.S. would be extremely expensive.
This would be the first tariff vs. a specific company.
Meanwhile, Trump said U.S.-EU trade talks "are going nowhere" and so he's "recommending a straight 50% Tariff on the European Union, starting on June 1, 2025." The U.S. currently imposes a 10% tariff on all European goods, but the 25% sector tariffs on steel, aluminum and especially autos raised the effective tariff on European goods.
Apple stock fell more than 3%.
Tesla, Palantir Technologies lost more than 1% and Nvidia stock declined over 2%. Nvidia earnings are due next week.
Dow Jones Futures Today
Dow Jones futures fell 1.4% vs. fair value. S&P 500 slumped 1.5% and Nasdaq 100 futures tumbled 1.85%. Apple stock is a Dow Jones, S&P 500 and Nasdaq component.
Futures suggest the S&P 500 could undercut its 200-day line at the open, with the Nasdaq not far away.
The 10-year Treasury yield tumbled to 4.45%.
Crude oil futures sank more than 1%.
Stock Market Rally Thursday
The stock market rally tried to bounce back Thursday, but the major indexes faded in the final hour.
The Dow Jones Industrial Average lost 1 point in Thursday's stock market trading, still below its 200-day line. The S&P 500 index lost a fraction. The Nasdaq composite rose 0.3%, but well off intraday highs. The small-cap Russell 2000 edged lower.
The Invesco S&P 500 Equal Weight ETF, which tumbled below its 200-day line on Wednesday, fell 0.3% on Thursday. RSP did bounce off its 21-day line but later hit resistance just below its 200-day line.
Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.