TL;DR

Trump tariffs hit Apple, EU; US futures drop; gold surges on fiscal, trade worries.

Highlights

• Trump threatens 25% tariff on all foreign-made iPhones; Apple drops 4% pre-market, tech sector pressured1.
• Trump proposes 50% tariff on all EU imports from June 1; US equity futures down over 1%2.
• Gold hits $3,330/oz, up 4% for the week, on US fiscal concerns after Moody’s downgrade and Trump tax bill8.
• US banks (JPMorgan Chase , Bank of America , Citigroup , Wells Fargo ) explore joint stablecoin to compete with $245B crypto market4.
• Deckers Outdoor falls 12% after hours on withdrawn outlook, HOKA slowdown, and analyst downgrades6.
• China’s central bank injects 500B yuan via MLF, lowers deposit rate ceiling to support banks and liquidity3.
• Japan’s inflation rises to 3.5% (rice prices +98% y/y); bond yields spike, BOJ faces rate hike pressure7.
• US revokes Harvard’s SEVP certification, forcing 6,800 foreign students to transfer; sector faces broader scrutiny10.
• US and China deputies signal progress in trade talks, agree to keep communication channels open11.
• Hyperliquid’s HYPE token rallies 17.9% to new highs, outpacing crypto peers amid strong DeFi activity18.
• Ukraine drone strikes hit Russian battery plant and oil refineries, disrupting infrastructure9.
• Ofgem cuts UK energy price cap by 7% for July, citing lower global gas/oil prices16.

Commentary

US markets are set for a volatile open as trade tensions escalate sharply. President Trump’s threat of a 25% tariff on all foreign-made iPhones has driven Apple down 4% pre-market, weighing on the broader tech sector and indices1. The situation is compounded by a proposed 50% tariff on all EU imports starting June 1, which has pushed US equity futures down over 1% and raised the risk of a new round of global trade disruptions2. These developments are likely to hit multinational exporters and supply chain-sensitive sectors hardest.

Safe-haven demand is pronounced, with gold surging to $3,330/oz, up 4% for the week. This move comes amid renewed US fiscal concerns following Moody’s downgrade and the passage of Trump’s tax bill, which is projected to increase deficits8. Treasury yields remain elevated, reflecting ongoing worries about US debt, while the dollar is softer. In digital assets, US banks’ exploration of a joint stablecoin signals rising competition with established crypto players4, and Hyperliquid’s HYPE token continues to outperform on strong DeFi activity18.

Sector rotation is evident: tech and consumer names face pressure from tariff headlines and company-specific disappointments, notably Apple 1 and Deckers Outdoor , the latter down sharply after withdrawing guidance and reporting a HOKA brand slowdown6. Meanwhile, US banks and crypto-exposed stocks may see renewed attention on digital asset initiatives4. Internationally, China’s liquidity support3 and Japan’s inflation spike7 are driving local bond market volatility, with potential spillovers into global rates if BOJ policy shifts.

Other notable developments include the US revoking Harvard’s SEVP certification, which could impact higher education and related sectors10, and ongoing US-China dialogue offering a tentative signal of progress but no concrete breakthroughs11. Ukraine’s drone strikes on Russian infrastructure9 and UK energy price cap cuts16 are relevant for commodity and energy market sentiment but have limited immediate impact on US trading.