Nasdaq 100 and Dow Jones: Apple Drops, VIX Jumps as Tech Stocks Weigh on US Stocks Today

Stocks Trim Losses After Steep Opening Drop on Trump’s Tariff Threats

Wall Street is trading lower Friday afternoon after a sharp early selloff sparked by President Donald Trump’s renewed trade threats.

The Dow Jones Industrial Average had dropped over 500 points at the open before trimming losses to 103 points, or 0.25%, to trade at 41,755.58 as of 18:18 GMT. The S&P 500 was down 0.30% at 5,824.51, while the Nasdaq Composite fell 0.56% to 18,819.87.

Are Apple and EU Tariff Threats a Tactical Move or Policy Shift?

Trump took to Truth Social to propose a 50% tariff on EU imports and warned Apple would face a minimum 25% tariff on iPhones sold in the U.S. if production remains overseas. Apple stock slid 2.6% to a two-week low. Barclays analysts called the announcement a likely negotiating ploy, but acknowledged ongoing trade policy uncertainty. Wedbush’s Dan Ives called the idea of Apple producing iPhones in the U.S. “a fairy tale,” warning that it would take years to restructure supply chains.

Which Sectors Are Leading the Decline?

Information technology and consumer discretionary sectors were the weakest performers, with ten of the eleven S&P sectors in negative territory.

The Philadelphia Semiconductor Index dropped over 2%, weighed down by losses in Nvidia, Micron, and Qualcomm.

Airline and retail stocks also struggled—American Airlines shed 2%, and Deckers Outdoor sank nearly 20% following disappointing forward guidance.

Market fear ticked higher, with the CBOE Volatility Index (VIX) rising to 22.14, its highest level in over two weeks.

Is the Intraday Recovery Driven by Pre-Holiday Positioning?

Despite the bearish tariff headlines and a spike in volatility, stocks have pulled off session lows. With U.S. markets closed Monday for Memorial Day, traders appear to be squaring positions ahead of the long weekend. The afternoon bounce looks more like technical short-covering and risk reduction than a shift in sentiment.

What Comes Next for Traders After This Volatile Week?

The Dow, S&P 500, and Nasdaq are all on pace to close the week with losses exceeding 2%. Easing long-dated Treasury yields reflect a shift to safety, but concerns about economic softening and potential stagflation remain. RFG Advisory’s Rick Wedell cautioned that unpredictable tariff rhetoric may be a constant under Trump’s administration. Traders should be prepared for renewed volatility next week, particularly if any of Friday’s threats transition from posts to policy.

More Information in our Economic Calendar.