U.S. stock markets experienced a downturn at midday as President Donald Trump threatened to impose a 25% tariff on Apple iPhones manufactured outside the United States, along with tariffs on products from the European Union. The Nasdaq fell by 1%, reflecting widespread concern among investors.
This warning prompted a decline in Apple’s stock prices, as Trump reiterated his stance on prioritizing domestic manufacturing. In a ripple effect, Deckers Outdoor, the company behind popular footwear brands Hoka and Ugg, announced it was withholding its full-year outlook, attributing its weakened current-quarter forecast to ongoing uncertainty over tariffs. Consequently, Deckers’ shares fell sharply.
Workday also saw its stock price decrease after it refrained from raising its full-year subscription revenue forecast in this “uncertain environment.” In contrast, Intuit emerged as a bright spot in the market, outperforming expectations on profit and sales during the essential tax season, prompting an upgrade in its guidance.
Additionally, shares of miners such as Newmont and Freeport McMoRan rose as gold prices reached their highest level in over two weeks. Meanwhile, technology company Seagate Technology saw its stock gain after Citi raised its price target, amid positive growth projections for the data storage sector.
In the commodities market, oil futures rallied while the yield on the 10-year Treasury note fell. The U.S. dollar declined against the euro, pound, and yen, with most major cryptocurrencies also trading lower.
Overall, while some sectors showed resilience, the overarching uncertainty from potential tariffs certainly dampened investor sentiment across U.S. markets. As the economic climate evolves, businesses will continue to adapt, which might present new opportunities for growth despite current challenges.