US Equity Indexes Fall in Week on Treasury Market Jitters, Trump Warnings to EU, Apple

MT Newswires Live
24 May

US equity indexes fell this week as the White House's budget bill triggered jitters in the Treasury market, while President Donald Trump threatened to impose hefty tariffs on Apple (AAPL) and the EU.

* The S&P 500 fell to 5,802.82 on Friday from 5,958.38 a week earlier, the Nasdaq Composite dropped to 18,737.21 from 19,211.1, and the Dow Jones Industrial Average declined to 41,603.07 from 42,654.74.

* The House of Representatives voted 215-214 to approve a bill that will likely expand the deficit by $2.3 trillion over 10 years, the Washington Post reported, citing data compiled by the nonpartisan Congressional Budget Office.

* "Overall, it amounts to more debt, bigger structural deficits, unwise tax policy distortions and even at that, it's not including up to half a trillion for Trump's 'Golden Dome,' which means that the true deficit and debt projections would be considerably higher over time," said Derek Holt, Scotiabank's head of capital market economics. "There is nothing substantive on infrastructure. It's all about funding tax cut extensions."

* The 30-year Treasury yield slid to 5.04% late Friday, still topping the psychologically important 5% level.

* The ICE US Dollar Index fell 0.8% to 99.12, trading close to the lowest since April 2022.

* In a social media post, Trump said trade talks with the EU are going nowhere, and he is "recommending a straight 50% tariff" on the bloc starting June 1.

* Trump threatened to impose at least a 25% tariff on Apple (AAPL) if the company sticks to its policy of manufacturing iPhones outside the US. The tech giant's shares dropped 3% on Friday.

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