Nasdaq leads opening slide as Trump threatens EU, Apple tariffs

Market Reaction - Major US stock indexes experienced significant declines, with the Dow down 380 points (0.9%), S&P 500 down 1.1%, and Nasdaq down 1.4% in early trading [1] - US stock futures extended losses following President Trump's tariff threats, with Nasdaq futures down 1.9%, Dow futures down 1.5%, and S&P 500 futures down 1.6% [4] Trade Tensions - President Trump proposed substantial tariffs on EU goods and suggested a 25% import tax on Apple if iPhones are not manufactured in the US [2][6] - Analysts expressed concerns that the current rhetoric represents a destabilizing threat, increasing the risk of recession and long-term damage to US credibility [2] Bond Market and Safe Haven Assets - Bond yields dropped sharply, with the 10-year Treasury yield falling 12 basis points to 4.10%, indicating a flight to safety among investors [3] - Gold prices spiked, reflecting market apprehension, while the dollar gained strength [3] Economic Indicators - Traders are monitoring upcoming economic data, including April's new home sales, as they prepare for a bond market close ahead of the Memorial Day weekend [3] Political Developments - The House of Representatives passed President Trump's tax and spending package by a narrow margin, raising concerns about its impact on bond markets and US debt levels [10]