Stocks close lower due to trade tensions and fiscal concerns as President Trump threatens tariffs

From Nasdaq: 2025-05-23 19:07:00

Stock indexes closed lower on Friday, with the S&P 500, Dow Jones, and Nasdaq all posting losses. Trade tensions and fiscal concerns weighed on stocks, with President Trump’s tariff threats impacting Apple. The markets are pricing in a 2% chance of a rate cut at the next FOMC meeting. Q1 earnings season has seen strong results, with 77% of S&P 500 companies beating estimates. Overseas markets settled mixed, with the Euro Stoxx 50 and Shanghai Composite falling.

Treasuries saw gains on Friday as stocks faltered after President Trump’s tariff threats. Yields fell, with comments from Treasury Secretary Bessent suggesting easing of bank rules that could lower yields further. European bond yields also declined, with Germany and the UK seeing drops. The ECB reported easing wage pressures in the Eurozone. German Q1 GDP was revised higher, while UK retail sales exceeded expectations.

US stock movers included chip stocks like Microchip Technology and Apple, which fell on tariff concerns. Deckers Outdoor, Workday, Booz Allen Hamilton, Copart, and Ross Stores also saw significant declines. Nuclear power stocks rose on news of regulatory easing, while gold mining stocks gained on higher gold prices. United States Steel and Intuit were among the top gainers. Seagate Technology rose after a price target upgrade from Morgan Stanley.

Earnings reports for May 27, 2025, included companies like American Vanguard Corp, AutoZone Inc, Box Inc, and HEICO Corp. The author did not have positions in the securities mentioned. The views expressed are those of the author and not Nasdaq, Inc.



Read more at Nasdaq: Stocks Settle Lower as President Trump Ramps Up Tariff Rhetoric