Trade Tensions and Tariffs Shake U.S. Markets Ahead of Memorial Weekend

U.S. stock index futures experienced a drop on Friday following President Donald Trump's suggestion of imposing a 50% tariff on the European Union. Simultaneously, Apple's stock suffered a decline after Trump's warning that tariffs would apply to its phones if not manufactured in the U.S.

According to Trump's remarks on Truth Social, the European Union was primarily formed to exploit the United States through trade, making negotiations challenging. Apple faced possible 25% tariffs on phones sold domestically unless produced within U.S. borders, causing a nearly 4% decrease in its premarket trading value.

As of 08:08 a.m. ET, Dow E-minis decreased 625 points (1.49%), S&P 500 E-minis dropped 93.25 points (1.59%), and Nasdaq 100 E-minis fell 405 points (1.91%). Andre Bakhos of Ingenium Analytics noted that tariffs introduced substantial market uncertainty. Other major stocks like Amazon and Nvidia also saw declines, while the CBOE Volatility Index spiked, indicating heightened risk sentiment amid the impending Memorial Day market closure.

(With inputs from agencies.)