The U.S. stock market in New York started on a downward trend on the 23rd (local time). Before the opening, President Donald Trump warned of a 50% tariff on the European Union (EU) and threatened to impose a minimum 25% tariff on iPhones produced outside the U.S., which negatively affected investor sentiment.
On this day, the Dow Jones Industrial Average opened 333.4 points (0.80%) lower at 41,525.7. The Standard & Poor's (S&P) 500 index dropped 60.1 points (1.03%) to 5,781.89, while the Nasdaq composite index began at 18,622.38, down 303.4 points (1.60%).
Trump's remarks regarding tariffs affected stock prices on this day. The president said, "I propose to impose a 50% tariff on the EU starting June 1." He claimed, "Due to the EU's strong trade barriers, value-added taxes, unreasonable corporate penalties, non-currency trade barriers, currency manipulation, and unfair and unjust lawsuits against U.S. corporations, the U.S. experiences an annual trade deficit of $250 million (approximately 340 billion won)."
European stock markets plunged more than 2% immediately after Trump's remarks. The Euro Stoxx 50 index of large European companies recorded a drop of 2.42% to 5,293.35 points. The German DAX 40 fell by 2.18%, and the French CAC 40 index decreased by 2.36%. The UK's FTSE 100 index, which had already concluded a trade agreement with the U.S., also dropped by 0.99%.
Additionally, President Trump stated that a 25% tariff would be imposed if iPhones are not manufactured in the United States. He noted, "I informed Apple CEO Tim Cook long ago that I hope iPhones sold in the U.S. are made in the U.S., not in India or other countries." Consequently, Apple's stock price fell by 2.7%, hitting a two-week low.
Steve Sosnick, chief market analyst at Interactive Brokers, said in an interview with Reuters, "Expanding the front of the trade war was the most unwanted situation for investors who were hoping for a quiet market close before the holiday, and it caught most off guard." He added, "It is unclear what context these remarks came from, but it is a typical example of volatility that we always need to be prepared for."
International oil prices have continued to decline for four consecutive days. As of 9:45 a.m. on this day, the price of West Texas Intermediate (WTI) crude oil for July delivery was at $60.97 per barrel, down 0.38% compared to the previous trading session, while the global benchmark Brent crude for July delivery dropped 0.45% to $64.15 per barrel.