NASDAQ Index, SP500, Dow Jones Forecasts – Tariff Concerns Weigh on US Stock Market

U.S. Stock Market Faces Setback as Trump Tariff Threats Fuel Uncertainty

U.S. stocks closed lower on Friday, marking a week of losses, following President Donald Trump’s tariff threats against European goods. Trump’s suggestion of imposing 50% tariffs reignited trade tensions, creating uncertainty across the market.

All three major U.S. indexes ended lower on the day and saw losses exceeding 2% for the week. Technology, communication services, and consumer discretionary sectors were the hardest hit, while utilities, consumer staples, and energy stocks saw some gains.

How Did Tariff Concerns Impact the Market?

Trade tensions resurfaced when Trump criticized the EU’s trade proposals, citing insufficient quality. He also warned Apple that it could face a 25% tariff on iPhones imported into the U.S. but not manufactured domestically. Apple’s stock dropped 3%, hitting a two-week low.

Other tech giants such as Amazon, Nvidia, and Meta Platforms also saw losses of over 1%, while Tesla slipped 0.5%. The broader tech sector faced a downturn, with the Nasdaq Composite falling 1.00% to 18,737.21.

Which Sectors Stood Out on Friday?

While most sectors faced pressure, energy, consumer staples, and utilities stocks managed to post gains. The market’s volatility was evident as the CBOE Volatility Index (VIX) surged by 10%, hitting a two-week high.

Semiconductor stocks suffered, with the Philadelphia Semiconductor Index (SOX) dropping 1.5%, amid growing concerns over the tariff impacts. Deckers Outdoor (DECK) faced a massive 20% slump after it warned that first-quarter net sales would miss estimates due to tariff-related macroeconomic uncertainties.

Treasury Yields Drop – Is This a Sign of Economic Shifts?

U.S. Treasury yields fell after reaching multi-month highs, with the 10-year Treasury note dropping 4.4 basis points to 4.509%. This decrease could signal investor concerns over a potential slowdown, as traders typically seek safe-haven assets during periods of heightened uncertainty.

Technical Analysis: Where Are the Key Levels?

Looking at the major indexes, technical indicators suggest that the markets are facing critical support levels.

The Dow Jones Industrial Average (DJI) is currently trading near its 50-day moving average at 41,039, with a key support level just below at 40,800. If this support holds, it could signal a potential bounce. However, if the index falls below this level, it may indicate further downside potential.

The S&P 500 is testing a similar support level around 5,773.10, the 200-day moving average. If the index holds above this key level, there could be a chance for stabilization. If it fails then look for the selling to extend into the 50-day moving average at 5584.60.

The Nasdaq Composite is also facing pressure, with the 200-day moving average at 18,412.54 on the radar. If it fails then look for a possible acceleration into the 50-day moving average at 17,564.50.

What Should Traders Watch Going Forward?

With trade tensions back in focus, market participants will be closely monitoring developments between the U.S. and EU, especially concerning tariff negotiations.

Additionally, the earnings outlook for companies, especially those in the tech and consumer discretionary sectors, will likely be impacted by the ongoing trade rhetoric.

Traders should also keep an eye on Treasury yields for signs of broader economic shifts, as well as the VIX, which remains elevated amid the growing uncertainty. Technical levels across the major indexes will also be key to watch, as they may offer clues to market direction in the coming days.

More Information in our Economic Calendar.