Traders work on the floor of the New York Stock Exchange during morning trading on May 12, 2025.
Michael M. Santiago | Getty Images News | Getty Images
Stocks declined Friday after President Donald Trump raised trade fears again, warning Apple and recommending stiffer duties on the European Union.
The Dow Jones Industrial Average lost 236 points, or 0.6%. The S&P 500 shed 0.7%, and the Nasdaq Composite dropped 0.9%.
Apple shares shed more than 2% after Trump posted on Truth Social that iPhones sold in the U.S. must be made in the U.S. and if they are not “a tariff of at least 25% must be paid by Apple.” The move against Apple by Trump is the first against a specific company in his tariff rollout this year.
Micron and Qualcomm declined 2%. Nvidia shares lost 1%.
AAPL 5-day chart
The president also said trade discussions with the EU “are going nowhere” and recommended “a straight 50% tariff on the European Union, starting on June 1, 2025.”
Stocks came off their lows of the day after CNBC’s Eamon Javers reported the White House did not interpret Trump’s remarks as a formal statement of policy.
Trump’s actions come at a time when tariff tensions were easing. Trump in April implemented duties on most nations in the world, which rattled the stock market and nearly put the S&P 500 in a bear market. The president then paused the stiffest tariffs for 90 days and hatched some preliminary agreements with the U.K. and China, causing stocks to recover. The S&P 500 got back to even on the year last week.
Investors were buying stocks on speculation that more agreements would be rolling out with various nations during this three-month pause period. Friday’s actions by Trump could mean that hope was misplaced.
“We’ve had this de-escalation tailwind at the market’s back for like six weeks now — and the market has had one of its best six-week stretches in the last 75 years — and a re-escalation of trade war rhetoric threatens that. I don’t think we’ll retest the lows or anything like that, unless it really ramps up, but this is certainly a step in the wrong direction from the market’s perspective,” said Ross Mayfield, investment strategist at Baird, in an interview with CNBC.
Friday’s declines added to the market’s weekly losses. The S&P 500, Dow and Nasdaq are all down more than 2% this week.
Looking ahead, Rick Wedell, the president and chief investment officer at RFG Advisory warned that this “roller coaster ride” of de-escalating and re-escalating tariff tensions is likely to be a permanent fixture of Trump’s second term.
“It is very important for investors to understand that this lingering trade issue is likely to be here for, I think, the duration of this administration. I don’t think they are going to look the other way on trade at any point. I think they think of this as a defining characteristic of the administration’s legacy is fixing the international trade deals,” he said. “I would just encourage investors to never get lulled into a false sense either way.”
Wedbush’s Dan Ives says Trump’s call for Apple to produce iPhones in the U.S. is a ‘fairy tale’
An attendee holds two iPhone 16s as Apple holds an event at the Steve Jobs Theater on its campus in Cupertino, California, on Sept. 9, 2024.
Manuel Orbegozo | Reuters
In a Friday note, Wedbush analyst Dan Ives cast criticism on Trump’s Friday announcement of a special tariff on Apple iPhones sold but not made in the U.S.
“We believe the concept of Apple producing iPhones in the [U.S.] is a fairy tale that is not feasible,” Ives wrote to clients in a Friday note.
The analyst added that this move is “not realistic,” given it would take between five and 10 years to onshore manufacturing.
CNBC Pro subscribers can read the full story here.
— Alex Harring, Lisa Kailai Han
Recession odds have increased after Trump ramped up trade tensions, investor says
Dr. Komal Sri-Kumar, president of Sri-Kumar Global Strategies, pointed out that investors now see greater odds of a recession following Trump’s reescalation of trade tensions on Friday morning.
“Notice that equity futures have tumbled while long-dated U.S. Treasury yields have fallen. This is because markets believe that chances of a recession have increased,” he said. “I anticipate that yields will also rise in the next few days. Why? Because the risk is stagflation, not just a recession.”
Meanwhile, Sri-Kumar noted that the trade war did not end after Trump decided to back off from his proposed 145% tariff on Chinese products. Rather, it just took a “short respite.” He added that the European Union has emerged as an increasingly important trading partner over the past few years.
“Also, [Trump] recommends a 50% tariff on imports from Europe,” Sri-Kumar said. “Remember that the EU was the largest exporter to the United States in 2024, beating China in that race.”
— Lisa Kailai Han
All S&P 500 sectors are now negative on the week
Following Friday’s market moves, all of the S&P 500‘s 11 sectors were pacing to close the week lower.
The energy sector, down 4.8%, led the weekly losses. The communication services sector fell 0.6% on Friday and is now slated to end the week with a 0.3% slide.
— Lisa Kailai Han
Apple market capitalization falls below $3 trillion level
Tim Cook, CEO of Apple Inc., during the Apple Worldwide Developers Conference at Apple Park campus in Cupertino, California, on June 10, 2024.
David Paul Morris | Bloomberg | Getty Images
Shares of Apple fell more than 2% on Friday after Trump took to Truth Social to announce that a 25% tariff “must be paid by Apple” on iPhones sold but not made in the U.S.
AAPL 5D chart
Apple’s move lower on Friday brought its market capitalization back below the $3 trillion level. It had last closed below that level on May 9.
Microsoft and Nvidia remain in the above $3 trillion market capitalization club.
Shares of Apple are now on pace for their eighth straight negative session for the first time since January 2020.
— Nick Wells, Lisa Kailai Han
3 stocks in the S&P 500 trade at new all-time highs
Despite the stock market’s retreat on Friday, three stocks in the S&P 500 traded at new 52-week highs, as shown below.
- Philip Morris trading at all-time highs back to its spinoff from Altria in March 2008
- GE Vernova trading at all-time highs back to its spinoff from GE in April 2024
- Intuit trading at all-time-high levels back to its initial public offering in 1993
On the other hand, three stocks in the benchmark hit new 52-week lows. This included:
- CarMax trading at lows not seen since November 2023
- Campbell Soup Company trading at lows not seen since February 2019
- Kraft Heinz trading at lows not seen since April 2020
- Revvity trading at lows not seen since December 2023
— Christopher Hayes, Lisa Kailai Han
White House believes market is overreacting to Trump’s tariff comments
U.S. Trade Representative Jamieson Greer testifies during a hearing before the House Committee on Ways and Means at Longworth House Office Building in Washington, D.C., on April 9, 2025.
Alex Wong | Getty Images
The White House view Friday morning was that the stock market was overreacting to Trump’s tariff comments, CNBC’s Eamon Javers reported.
The White House, Javers added, did not interpret the president’s post as a formal statement of policy.
Javers noted that U.S. Trade Representative Jamieson Greer has a call with his European counterparts later today, so the president’s post earlier today may have been an attempt to create space and leverage for Greer to negotiate.
— Jesse Pound, Christina Wilkie
Pressure should stay on Apple, Blue Chip Daily Trend Report CEO warns
Larry Tentarelli, CEO of the Blue Chip Daily Trend Report, cautioned against investors buying the dip on Apple shares following Trump’s announcement of a special tariff on iPhones.
“The tariff headlines surrounding Apple … will probably remain as an overhang on the stock,” he said in an email to CNBC.
Tentarelli said his concerns around the stock were bolstered by its recent underperformance compared with the Invesco QQQ Trust (QQQ).
“We would not be buyers of AAPL stock currently, unless there is a major resolution here,” Tentarelli said. “I don’t expect AAPL will look to move production to the U.S., due to the increased cost, and 25% tariffs would likely be much less than the increase in production costs.”
“Overall though, this should keep pressure on AAPL,” he added.
— Alex Harring
Goldman: Monster is ‘one of the most attractive growth stories’ among staples
Goldman Sachs offered praise for Monster Beverage in a note to clients.
“We believe MNST is one of the most attractive growth stories in broader Staples,” analyst Bonnie Herzog wrote in a note published Thursday.
“We continue to believe MNST has meaningful room to grow gross profit dollars (and improve gross margins) through a combination of incremental topline growth opportunities from strong innovation & pricing, while moderating input costs provide a clear line of sight to [Green Monster] recovery,” Herzog added. “Ultimately we think [that] should serve as a positive catalyst and support a further re-rating of the stock.”
— Alex Harring
Stocks fall after Trump ramps up trade war
Traders work on the floor of the New York Stock Exchange on May 21, 2025.
Spencer Platt | Getty Images
European stocks fall on Trump’s EU tariff recommendation
Stocks making the biggest moves premarket
Check out the companies making headlines before the bell:
- Apple — The tech giant saw shares fall 3.5% in premarket trading after President Donald Trump said in a social media post that Apple will have to pay a tariff of 25% or more for iPhones made outside the U.S.
- Nuclear stocks — Stocks tied to nuclear energy rose as a group after Reuters reported, citing sources, that Trump will sign orders to boost nuclear power as soon as Friday. Shares of Oklo and NuScale rallied more than 8% each. Constellation Energy gained 2%, while Cameco rose 4%.
- Intuit — Shares rallied nearly 8% after the tax software company issued a rosy full-year outlook. Intuit expects adjusted earnings in the range of $20.07 to $20.12 per share, up from its previous guidance of $19.16 to $19.36 per share. Analysts expected $19.40 in earnings per share, according to consensus estimates from FactSet. The company’s fiscal third-quarter also beat expectations.
Read the full story here.
— Sarah Min
Nuclear stocks rally on report Trump will sign executive orders to back industry
Cooling towers are seen through a window at the Three Mile Island Nuclear power plant, during a tour by Constellation Energy, which has ordered a main power transformer for the nuclear reactor it is trying to reopen, in Middletown, Pennsylvania, on Oct. 16, 2024.
Shannon Stapleton | Reuters
Nuclear power stocks jumped on Friday after sources familiar with the matter told Reuters that Trump will sign executive orders to speed the construction of reactors and secure key materials for the industry.
Trump could sign the orders as early as Friday, the sources said. The official White House calendar has Trump scheduled to sign orders in the Oval Office at 1 p.m. ET.
Advanced reactor companies NuScale and Oklo respectively surged 11% and 9%. Shares of Constellation Energy, the largest nuclear operator in the U.S., rose nearly 4%, while Cameco Corp., one of the world’s largest uranium miners, climbed 5%.
— Spencer Kimball, Lisa Kailai Han
Trump recommends 50% tariff on European Union
Jakub Porzycki | Nurphoto | Getty Images
On Friday, Trump said he is “recommending a straight 50% Tariff on the European Union,” citing stalling trade negotiations between the bloc and the U.S. Trump’s proposed tariff would begin on June 1.
In a Truth Social post, Trump called the European Union “very difficult to deal with.”
“Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable. Our discussions with them are going nowhere!” he wrote.
The president added that no tariffs would be imposed for any products built or manufactured in the U.S.
— Lisa Kailai Han
Trump declares 25% tariff on Apple iPhones sold but not manufactured in the U.S.
A man checks an iPhone 16 Pro as the new iPhone 16 series smartphones go on sale at an Apple store in Beijing, China, on Sept. 20, 2024.
Florence Lo | Reuters
Shares of Apple fell 3% in Friday’s premarket trading hours after Trump took to Truth Social to announce that a 25% tariff “must be paid by Apple” on iPhones sold but not made in the U.S.
AAPL 5D chart
“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. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,” Trump wrote in the post.
— Lisa Kailai Han
Sonoco Products gets double upgrade from Wells Fargo
Wells Fargo issued a rare double upgrade to Sonoco Products on Friday.
Analyst Gabe Hajde raised his rating on the manufacturer to overweight from underweight. Hajde also lifted his price target by $10 to $55, which implies 21.9% upside over Thursday’s closing level.
“With valuation well below historical averages and a relatively clear path to higher profits, we view the shares as attractive,” Hajde wrote to clients in a Friday note announcing the call.
Hajde also noted that the company’s efforts to simplify the business have started reaching the “late” stages.
Shares popped more than 1% in Friday’s premarket trading. The stock has lost more than 7% in 2025, on pace for its third straight losing year.
Sonoco Products, year to date
— Alex Harring
Supreme Court suggests Fed board members are protected from being fired by a president
The U.S. Supreme Court is seen on the first day of a new term in Washington, D.C., on Oct. 7, 2024.
Saul Loeb | Afp | Getty Images
The Supreme Court suggested on Thursday that Federal Reserve board members have special protection from being fired by a president.
This ruling permits President Donald Trump to fire two members who are on the boards of federal agencies, but it also suggests that an attempt by a president to terminate a Federal Reserve board member would face pushback from the Supreme Court.
“The Federal Reserve is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States,” the majority ruling said.
Read more about the Supreme Court’s decision here.
— Darla Mercado, Dan Mangan
Stocks making the biggest moves after hours
Check out some of the companies making headlines in extended trading:
- Ross Stores — Shares pulled back more than 11%. Ross withdrew its earlier full-year guidance. The off-price retailer said it expects second-quarter earnings to range from $1.40 to $1.55 per share, while analysts polled by LSEG sought $1.65 per share. Ross also said it expects pressure on its profitability if tariffs remain at elevated levels.
- AutoDesk — Shares gained more than 2% after the software company issued a higher-than-expected second-quarter outlook. AutoDesk forecast adjusted earnings in the current quarter in the range of $2.44 to $2.48 per share on revenue of $1.72 billion to $1.73 billion. Analysts polled by LSEG were looking for $2.34 in earnings per share and revenue of $1.70 billion.
- Intuit — Shares of the tax software company gained about 8% after Intuit forecast a rosy outlook for the full year. The firm forecast adjusted earnings in the range of $20.07 to $20.12 per share, up from its earlier guidance of $19.16 to $19.36 per share. FactSet consensus estimates sought $19.40 per share. Fiscal third-quarter results also topped estimates.
Read the full list here.
— Brian Evans
Stock futures rise
Stock futures were higher on Thursday as investors try to shake off rising Treasury yields.
Futures tied to the Dow Jones Industrial Average added 59 points, or 0.1%. Nasdaq 100 futures traded higher as well, alongside S&P 500 futures.
— Brian Evans
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