Overview of Wall Street Performance
On Friday morning, the three major indices of Wall Street experienced a decline. The Dow Jones dropped nearly 1%, primarily due to a significant fall in Apple‘s stock value, following trade threats from U.S. President Donald Trump against the tech giant.
- Dow Jones: Decreased by 0.94% to 25,464.15 points
- S&P 500: Fell by 1.18% to 3,773.09 points
- Nasdaq Composite: Dropped by 1.53% to 18,636.96 units
Apple’s Stock Plummets Following Trump’s Trade Warnings
Apple, the world’s most valuable company, saw its shares plummet by 7.17% after Trump warned of a 25% tariff if the iPhone production doesn’t shift to the U.S. Currently, Apple’s iPhones are predominantly manufactured in China and India.
Trump’s Additional Trade Threats to the EU Cause Market Uncertainty
Trump’s further threats to the European Union, suggesting a possible 50% tariff if negotiations fail and deadlines expire, have added to market nervousness. In a statement on his Truth Social platform, Trump criticized the EU for its formation with the intent to exploit the U.S. in trade.
“It’s been very difficult dealing with the European Union, which was formed primarily to take advantage of the U.S. in trade,” said Donald Trump.
Broad Market Decline Across Sectors
Out of the 11 leading sectors in the S&P, all experienced a decline. The discretionary consumer and information technology sectors were the most affected. Growth stocks, including Apple, Amazon.com, and Nvidia, saw significant drops, with each losing approximately 2%.
Key Questions and Answers
- What is the main reason for Wall Street’s decline? The significant fall in Apple‘s stock value, following trade threats from U.S. President Donald Trump, is the primary reason for Wall Street’s decline.
- What tariff threat did Trump issue to Apple? Trump warned of a 25% tariff on iPhones if Apple doesn’t shift production to the U.S.
- What additional trade threats did Trump make to the EU? Trump suggested a possible 50% tariff on European goods if negotiations fail and deadlines expire.
- Which sectors were most affected by the market decline? The discretionary consumer and information technology sectors experienced the most significant drops.
