Wall Street and European Markets Decline Amid New Tariff Threats from Trump
U.S. President threatens to impose tariffs on the EU and Apple, leading to significant market downturns.
U.S. stock markets closed in the red on Friday following President Donald Trump's announcement of a potential 50% tariff on the European Union (EU) if trade negotiations do not progress.
Additionally, he threatened a 25% tariff on Apple unless the company relocates manufacturing to the United States.
The news prompted notable declines in European stock markets as well.
The IBEX 35 experienced significant volatility in response to the announcement, ultimately closing down by 1.18% after recovering from a larger decline.
The index ended the week at 14,104.10 points, maintaining a positive weekly balance with an overall gain of 0.28%, marking six consecutive weeks of increases.
Among the prominent performances within the IBEX, Indra rose by 3.4%, achieving an annual increase of over 100%.
Other gainers included Enagás with a 1.55% rise and Acciona Energía up by 0.79%.
Conversely, major losses were noted for BBVA, which fell by 3.03%.
CaixaBank shed 2.61%, while Puig and Inditex recorded declines of 2.46% and 2.41%, respectively.
Iberdrola was the only major IBEX component that avoided losses, increasing by 0.28% to reach historical highs.
Banco Santander and Repsol suffered declines of 1.47% and 0.91%, respectively.
European markets similarly closed lower, with Milan decreasing by 1.94%, Paris down 1.65%, and Frankfurt falling by 1.54%.
London, largely unaffected by the tariff announcement, registered a minor decline of 0.24%.
The Euro Stoxx 50, which represents the largest European companies by market capitalization, saw a decrease of 1.81%.
In the U.S., Wall Street also closed with declines: the Nasdaq fell by 1%, the Dow Jones declined by 0.61%, and the S&P 500 slid by 0.67%.
Apple was a significant contributor to the downturn, its stock falling by 2.96%.
Other major technology firms, referred to as the 'FANG' stocks, also reported losses, including Nvidia down 1.16%, Meta down 1.49%, Alphabet by 1.40%, Amazon down 1.04%, Microsoft falling by 1.03%, and Tesla decreasing by 0.50%.
President Trump took to Truth Social to express his expectations for Apple, stating that iPhones sold in the U.S. should be manufactured domestically rather than in countries like India.
He warned that failure to comply could lead to a tariff of at least 25%.
Despite previously expressing initial approval of Apple's plans for a $500 billion investment in the U.S. over four years, Trump's comments come after Apple indicated that sustained tariffs could result in approximately $900 million in additional costs next quarter.
This week has seen a focus on debt markets, with analysts noting a potential erosion of investor confidence in the U.S. market, exacerbated by concerns over a growing national deficit and proposed tax cuts.
The yield on the U.S. ten-year bond climbed above 4.6% amid these developments, drawing concern about rising mortgage and credit loan rates.
In the commodities market, the price of Brent crude oil was reported at $64.95 per barrel, representing a 0.79% increase, while Texas crude rose by 0.96% to $61.79. In currency markets, the euro was valued at 1.1348 against the dollar, reflecting a 0.59% gain compared to the previous day.
At the close of European markets, the U.S. bond yield stood at 4.489%, while German bonds yielded 2.56%.
In Spain, the yield was recorded at 3.187%, with a stable risk premium of 61.5 basis points.
Additionally, he threatened a 25% tariff on Apple unless the company relocates manufacturing to the United States.
The news prompted notable declines in European stock markets as well.
The IBEX 35 experienced significant volatility in response to the announcement, ultimately closing down by 1.18% after recovering from a larger decline.
The index ended the week at 14,104.10 points, maintaining a positive weekly balance with an overall gain of 0.28%, marking six consecutive weeks of increases.
Among the prominent performances within the IBEX, Indra rose by 3.4%, achieving an annual increase of over 100%.
Other gainers included Enagás with a 1.55% rise and Acciona Energía up by 0.79%.
Conversely, major losses were noted for BBVA, which fell by 3.03%.
CaixaBank shed 2.61%, while Puig and Inditex recorded declines of 2.46% and 2.41%, respectively.
Iberdrola was the only major IBEX component that avoided losses, increasing by 0.28% to reach historical highs.
Banco Santander and Repsol suffered declines of 1.47% and 0.91%, respectively.
European markets similarly closed lower, with Milan decreasing by 1.94%, Paris down 1.65%, and Frankfurt falling by 1.54%.
London, largely unaffected by the tariff announcement, registered a minor decline of 0.24%.
The Euro Stoxx 50, which represents the largest European companies by market capitalization, saw a decrease of 1.81%.
In the U.S., Wall Street also closed with declines: the Nasdaq fell by 1%, the Dow Jones declined by 0.61%, and the S&P 500 slid by 0.67%.
Apple was a significant contributor to the downturn, its stock falling by 2.96%.
Other major technology firms, referred to as the 'FANG' stocks, also reported losses, including Nvidia down 1.16%, Meta down 1.49%, Alphabet by 1.40%, Amazon down 1.04%, Microsoft falling by 1.03%, and Tesla decreasing by 0.50%.
President Trump took to Truth Social to express his expectations for Apple, stating that iPhones sold in the U.S. should be manufactured domestically rather than in countries like India.
He warned that failure to comply could lead to a tariff of at least 25%.
Despite previously expressing initial approval of Apple's plans for a $500 billion investment in the U.S. over four years, Trump's comments come after Apple indicated that sustained tariffs could result in approximately $900 million in additional costs next quarter.
This week has seen a focus on debt markets, with analysts noting a potential erosion of investor confidence in the U.S. market, exacerbated by concerns over a growing national deficit and proposed tax cuts.
The yield on the U.S. ten-year bond climbed above 4.6% amid these developments, drawing concern about rising mortgage and credit loan rates.
In the commodities market, the price of Brent crude oil was reported at $64.95 per barrel, representing a 0.79% increase, while Texas crude rose by 0.96% to $61.79. In currency markets, the euro was valued at 1.1348 against the dollar, reflecting a 0.59% gain compared to the previous day.
At the close of European markets, the U.S. bond yield stood at 4.489%, while German bonds yielded 2.56%.
In Spain, the yield was recorded at 3.187%, with a stable risk premium of 61.5 basis points.
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Translated by AI
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