Stocks clocked in large weekly declines, returning to year-to-date losses. The Dow Jones Industrial Average (DJIA) fell by 2.47%, the S&P 500 (SPX) dropped by 2.61%, and the tech-heavy Nasdaq-100 (NDX) declined by 2.39% for the week.
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The technology sector was the worst performer on Friday, reversing its previous outperformance over other sectors. This followed comments from President Trump threatening 25% tariffs on Apple if the company did not shift its iPhone production to the U.S. Later in the day, the President clarified that these tariffs would apply to other phone makers as well.
Losses accelerated further after Donald Trump said in a social media post that trade talks with the European Union were going nowhere, and that he plans to impose a “straight 50% tariff” on the bloc as soon as June 1. The EU is America’s largest trading partner, accounting for nearly 20% of total trade.
And just like that, trade war fears returned to haunt the markets. The new tariff threats added to other developments weighing on sentiment, including Moody’s downgrade of the U.S. credit rating, a weak Treasury auction and concerns over the surging fiscal deficit – which alone may have been overlooked by the markets, but trade policy volatility has pushed them to the surface. Last week served as a reminder that until trade deals are finalized with major trade partners, the tariff theme will continue to be a source of major uncertainty and stock-market risk.
Three Economic Events
Here are three key economic events that could affect your portfolio this week. For a full listing of additional economic reports, check out the TipRanks Economic Calendar.
» Q1 2025 GDP Growth Annualized (second estimate) – Thursday, 05/29 – This report will provide a refined insight into Q1 2025 GDP growth, incorporating additional data that wasn’t available for the advance estimate. The advance estimate showed that real GDP decreased at an annualized rate of 0.3%, contrasting sharply with Q4 2024’s 2.4% growth. While the second estimate is expected to remain unchanged, revisions are possible as more complete data is factored in.
» April’s Core Personal Consumption Expenditures (Core PCE) – Friday, 05/30 – This report tracks changes in inflation based on consumer spending, excluding volatile items such as food and energy. The Federal Reserve considers the annualized Core PCE Price Index its preferred inflation gauge.
» May’s Michigan Consumer Sentiment Index and UoM 5-year Consumer Inflation Expectations (preliminary readings) – Friday, 05/30 – These reports summarize consumer confidence and long-term inflation expectations in the U.S. Consumer confidence impacts spending, which accounts for roughly 70% of U.S. GDP. The inflation expectations component is closely monitored by policymakers and is factored into the Federal Reserve’s Index of Inflation Expectations.
For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.