Stocks slide as Trump threatens new tariffs against EU and Apple: Morning Buzz

Stock futures were flat in early morning trading, but took a turn for the worse after President Donald Trump took to Truth Social to make tariff threats against Apple and the European Union.

President Trump’s recent announcements have heightened market apprehensions. He proposed a 25% tariff on iPhones not manufactured in the U.S., causing Apple shares to decline, and he recommended a 50% tariff on European Union goods, leading to a drop in European stocks and a weakening euro.

On the legislative front, the House narrowly passed a $3.8T tax and spending bill, which now awaits Senate approval. The bill includes a $4T debt ceiling increase, raising concerns about long-term U.S. debt sustainability.

As the markets approach the Memorial Day weekend, trading volumes may decrease, potentially leading to increased volatility.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 

1. STOCK NEWS:

• President Trump threatened Apple (AAPL) with a “tariff of at least 25%” if iPhones sold in the U.S. are not built domestically
• In another post to Truth Social, President Trump also said he is recommending a “straight 50% Tariff on the European Union” since trade talks “are going nowhere!”
• Intuit (INTU) fiscal Q3 results came in well ahead of estimates, driven by outsized TurboTax and Credit Karma beats
• Deckers Outdoor (DECK) was downgraded and had price targets cut by a number of firms following its fiscal Q4 report
• Workday (WDAY) shares are sliding after the company’s Q1 results and guidance

2. WALL STREET CALLS:

• Wedbush upped its Tesla (TSLA) price target to $500 with the company’s “dark chapter” now in the “rear-view”
• Sonoco (SON) double upgraded to Overweight from Underweight at Wells Fargo
• Fulcrum Therapeutics (FULC) upgraded at Leerink ahead of sickle-cell disease trial data
• Telsey, Evercore and KeyBanc downgraded Deckers Outdoor (DECK) after earnings
• Radian Group (RDN) downgraded to Neutral at Compass Point

3. AROUND THE WEB:

• Nippon Steel’s (NPSCY) talks with the U.S. government over its planned purchase of U.S. Steel (X) are in the “final stage,” Nippon Steel President Tadashi Imai said Friday, Nikkei Asia says
• Douglas Elliman (DOUG) received a merger offer from a competitor this week that would value the business at about double its current share price, Bloomberg reports
• IT services firm Capgemini’s (CGEMY) discussions to acquire WNS Holdings (WNS) have stalled following global market volatility, Bloomberg says
• Nissan (NSANY) is considering the sale of its Yokohama headquarters in addition to cutting seven of its 17 global factories, Nikkei Asia reports
• Disney (DIS) has filed a lawsuit against Alphabet’s (GOOGL) YouTube, claiming breach of contract after YouTube hired longtime Disney executive Justin Connolly as its global head of media and sports, Bloomberg reports

4. MOVERS:

• Merus (MRUS) gains in New York after providing updated data on petosemtamab in combination with pembrolizumabat HNSCC
• SolarEdge (SEDG) higher in New York after Northland upgraded the stock to Market Perform
• Gyre Therapeutics (GYRE) declines after announcing a 2.22M share offering
• Bicara Therapeutics (BCAX) falls after publishing updated data from its Phase 1/1b trial of ficerafusp
• Xerox (XRX) lower after cutting its quarterly dividend to 2.5c per share from 12.5c

5. EARNINGS/GUIDANCE:

• Ross Stores (ROST) reported Q1 results, with CEO Jim Conroy commenting, “Despite the slower start to the spring selling season in February, our monthly sales performance improved sharply”
• Autodesk (ADSK) reported Q1 results and provided guidance for Q2 and FY26
• Booz Allen (BAH) reported Q4 results and provided guidance for FY26
• The Buckle (BKE) reported Q1 results, with EPS and revenue higher year-over-year
• Lionsgate Studios (LION) reported Q4 results, with CEO Jon Feltheimer calling it “a strong quarter despite a difficult operating environment”

INDEXES:

Near midday, the Dow was down 0.73%, or 304.94, to 41,554.15, the Nasdaq was down 1.08%, or 204.83, to 18,720.90, and the S&P 500 was down 0.82%, or 48.12, to 5,793.89.