How Did Tariff Concerns Impact the Market?
Trade tensions resurfaced when Trump criticized the EU’s trade proposals, citing insufficient quality. He also warned Apple that it could face a 25% tariff on iPhones imported into the U.S. but not manufactured domestically. Apple’s stock dropped 3%, hitting a two-week low.
Other tech giants such as Amazon, Nvidia, and Meta Platforms also saw losses of over 1%, while Tesla slipped 0.5%. The broader tech sector faced a downturn, with the Nasdaq Composite falling 1.00% to 18,737.21.
Which Sectors Stood Out on Friday?
While most sectors faced pressure, energy, consumer staples, and utilities stocks managed to post gains. The market’s volatility was evident as the CBOE Volatility Index (VIX) surged by 10%, hitting a two-week high.
Semiconductor stocks suffered, with the Philadelphia Semiconductor Index (SOX) dropping 1.5%, amid growing concerns over the tariff impacts. Deckers Outdoor (DECK) faced a massive 20% slump after it warned that first-quarter net sales would miss estimates due to tariff-related macroeconomic uncertainties.
Treasury Yields Drop – Is This a Sign of Economic Shifts?
U.S. Treasury yields fell after reaching multi-month highs, with the 10-year Treasury note dropping 4.4 basis points to 4.509%. This decrease could signal investor concerns over a potential slowdown, as traders typically seek safe-haven assets during periods of heightened uncertainty.
Technical Analysis: Where Are the Key Levels?
Looking at the major indexes, technical indicators suggest that the markets are facing critical support levels.