The return of tough tariff talk sinks stocks
US stocks fell again on Friday as President Trump threatened that high tariffs on shipments from Europe and imported smartphones were around the corner.
The S&P 500 ended down 0.7%, its first four-session losing streak since the reciprocal tariff announcement on April 2, and retreated 2.6% on the week. The Nasdaq 100 finished off 0.9% while the Russell 2000 fell 0.3% on Friday.
Utilities was the best-performing S&P 500 sector ETF, buoyed by an executive order signed by Trump to make it easier to build nuclear reactors in the US and Republican senators’ pushback against cuts to clean energy tax credits. Most sectors fell, with tech and consumer discretionary performing the worst.
One key industry group to the market’s hot run since the April lows and the past two years is coming under consistent pressure. The Philadelphia Semiconductor Index declined for its seventh straight session, its longest losing streak since September 2022.
Apple slid as a Trump Truth Social post regarding tariffs on smartphones singled out the company specifically, remarks that were later clarified to apply to other phone makers as well.
European automakers Stellantis, Volkswagen, and Mercedes-Benz were also dumped amid the president’s recommendation that tariffs on European imports should rise to 50% starting on June 1.
Deckers was the worst-performing S&P 500 constituent, down nearly 20% after issuing a disappointing forecast for the current quarter and failing to provide full-year guidance.
