Wall Street pulls back after Apple warning
Wall Street finished lower on Friday as investors digested renewed trade rhetoric from President Donald Trump and a direct threat to Apple. The Dow Jones Industrial Average dropped 256 points to 41,603, the S&P 500 shed 0.67% to 5,802, and the Nasdaq slipped 1% to 18,737.
The selloff followed a post on Truth Social in which Trump said iPhones sold in the United States must be manufactured domestically—or face a 25% tariff. Apple shares slid nearly 3% on the day, with analysts warning the proposal would be prohibitively expensive to implement. Wedbush’s Dan Ives called the idea “a fairy tale,” estimating that a US-assembled iPhone could cost more than US$3,500.
Despite some sector-specific strength, Friday capped a weak week overall: the Dow, S&P 500, and Nasdaq all fell more than 2%. The S&P is now back in negative territory for the year after a brief rebound earlier this month.
Weekend escalation: EU in the firing line
After markets closed Friday, Trump took the trade fight further, announcing that he would recommend a 50% tariff on all European Union goods, effective June 1. While not yet formalised, the move immediately drew condemnation from European leaders, with EU Trade Commissioner Maroš Šefcovic calling for “respect, not threats.”
The EU exported over US$600 billion in goods to the US last year and is one of Washington’s largest trading partners. French, German, and Irish officials expressed concern over the potential damage to both economies, while Brussels hinted at possible retaliatory measures if talks fail.
Steel surges, tech stumbles
Elsewhere on Friday, United States Steel shares surged 21% after Trump voiced support for a “partnership” with Japan’s Nippon Steel—a reversal of his earlier opposition to their US$14.9 billion merger. Investors interpreted the post as a green light for the deal.
Commodities and the dollar
Brent crude is trading 0.26% higher at US$64.95 a barrel.
WTI crude is trading 0.36% higher at US$61.75 a barrel.
Spot gold is trading 0.29% lower at US$3,347.82 an ounce.
Gold futures (COMEX) are trading 0.38% lower at US$3,381.70 an ounce.
One Australian dollar is buying 65.03 US cents.
Looking ahead
In Australia, attention shifts to Wednesday’s release of April CPI figures. Inflation is expected to edge lower—from 2.4% to 2.3%.
The SPI futures are pointing to a 30 point fall.
