Market Monitor News May 26 (Enphase Energy UP - Ross Stores, Workday DOWN)

New Tariff Threats Shake Wall Street: Apple in the Crosshairs, EU Deadline Extended

Markets Rattle Amid Renewed Protectionist Rhetoric from Trump

U.S. stock markets closed lower on Friday, May 20, 2025, as escalating trade tensions and economic uncertainty weighed heavily on investors.

President Donald Trump sparked a new wave of concern with threats aimed at both Apple (AAPL | -3.02%) and the European Union. The Dow Jones fell 0.6%, the S&P 500 dropped 0.7%, and the Nasdaq slid 1.0%.

Apple Under Pressure from Tariff Threats

Trump announced on social media that Apple (AAPL | -3.02%) could face a 25% import tariff if the company continues producing iPhones outside of the U.S. The president claimed he had informed Apple CEO Tim Cook long ago that iPhones sold in the U.S. should also be manufactured there.

Apple closed below the key $200 mark after its eighth consecutive losing session, the longest losing streak since 2022.

Analysts called the plan unrealistic. According to Wedbush, producing iPhones entirely in the U.S. could push the retail price up to $3,500, a scenario deemed infeasible for both Apple and consumers.

Bloomberg Intelligence warned that price hikes from tariffs could threaten Apple’s market share. Alternatively, if Apple absorbs the extra costs itself, it could see its gross margin drop by 3 to 3.5 percentage points.

EU Tariff Threat Delayed Until July

Earlier in the week, Trump also threatened a 50% import tariff on all goods from the European Union, triggering a market sell-off. However, on Sunday evening, the president announced a delay until July 9 after what he called a “very good” phone call with European Commission President Ursula von der Leyen.

Despite the pause, risks remain. Analysts noted that Trump may be using the EU as a strategic example to pressure other trade partners. Notably, the current 90-day tariff war pause ends on July 9, a likely deliberate coincidence.

The European Commission, meanwhile, is weighing countermeasures such as restricting U.S. tech firms in government contracts or even excluding Starlink (a SpaceX subsidiary, not publicly traded) from public infrastructure projects.

Broader Market Reaction to Company News

Ross Stores (ROST | -9.85%) plunged nearly 10% after posting disappointing quarterly results and pulling its full-year guidance.

The company, known for selling low-cost clothing, footwear, and home goods, over half of which are sourced from China, warned that sustained tariffs would pressure profitability.

Coinbase (COIN | -3.23%) fell after bitcoin slipped to $108,766, despite hitting a near-record high of $112,000 earlier in the week.

Enphase Energy (ENPH | +4.30%) rebounded after a sharp sell-off earlier in the week.

Workday (WDAY | -12.52%) tumbled despite beating earnings estimates; its guidance for Q2 disappointed.

IonQ (IONQ | -0.22%) slightly declined following Thursday’s 36% surge, its largest single-day gain ever. CEO Niccolo de Masi told Barron’s the company aims to become "the Nvidia of quantum computing."

Economic Data and Interest Rate Trends

Housing Shows Strength

On the economic front, new single-family home sales in the U.S. surged in April by 10.9%, reaching 743,000 units — up from 670,000 in March.

Bond Yields and Oil Prices

• 10-year yield dropped 4 basis points to 4.508%.

• 30-year yield declined 3 basis points to 5.031%.

• Crude oil closed 0.5% higher at $61.53, though it ended the week down 0.7%.

Looking Ahead

Wall Street will be closed Monday in observance of Memorial Day. Investors are closely watching upcoming Fed commentary. Boston Fed President Susan Collins said interest rate cuts are unlikely to happen soon, or possibly at all, this year.

Conclusion

With escalating trade threats, uncertain monetary policy, and weak corporate results, markets remain on edge. Whether the EU tariff delay marks the start of true de-escalation remains unclear.

For now, Apple stands as the emblem of mounting pressure on U.S. tech amid Trump’s trade agenda.

Next to read: Market Monitor Trends & Breadth, May 26