Friday Afternoon Coffee - Markets Update - 23 May 2025 - Markets Sink as Trump Threatens EU Tariffs and Targets Apple; Gold Surges

The Trade Academy Team
May 23
2 min read

Markets Update: Global markets stumbled Friday after President Donald Trump escalated trade tensions with fresh tariff threats aimed at the European Union and Apple, sending the dollar lower and boosting demand for traditional safe havens like gold and government bonds.

Global Markets Roundup: 23 May 2025

In a volatile session, U.S. equities slumped sharply after Trump proposed a 50% tariff on all EU imports starting June 1 and floated the possibility of a 25% tariff on iPhones produced outside the U.S. The move blindsided investors who had anticipated Apple might be spared.

Stocks Slide on Tariff Shockwaves

Tech stocks bore the brunt of the selloff, with Apple (AAPL) tumbling 2.5% and the Nasdaq Composite dropping more than 1%. Broader indexes also closed lower as traders digested the implications of renewed trade aggression and a rising federal debt load.

Dow Jones Industrial Average: -284.70 points (-0.68%) to 41,576.68
S&P 500: -51.16 points (-0.88%) to 5,790.85
Nasdaq Composite: -221.02 points (-1.17%) to 18,704.71

European markets mirrored the selloff, with the STOXX 600 index falling 1.06%, while MSCI’s global index dropped 0.56% to 866.13.

Dollar Weakens, Bonds Rally

The dollar slid as investors sought safety in government bonds and the Japanese yen USDJPY. The dollar index DXY) fell 0.46% to 99.45, marking its first weekly loss in a month. The greenback also weakened 0.81% against the yen and 0.35% versus the euro EURUSD.

Treasury yields pulled back from recent highs, with the 10-year note yield falling 3.4 basis points to 4.519%, and the 30-year bond yield easing 1.7 basis points to 5.0468%. European bonds also rallied, reversing losses from earlier in the week.

Gold Soars to New Highs

Gold prices continued their ascent amid heightened geopolitical risk and concern over the U.S. fiscal trajectory. Spot gold rose 1.47% to $3,342.49 an ounce, building on a multi-month rally fueled by safe-haven flows and growing skepticism about U.S. debt sustainability.

Oil Gains, Cocoa Retreats

Crude oil inched higher despite the market’s broader risk-off tone:

WTI Crude (CL1!): +$0.20 (+0.33%) to $61.40/barrel
Brent Crude (BRN1!): +$0.14 (+0.22%) to $64.58/barrel

Cocoa prices fell back from recent highs on profit-taking and favorable West African weather forecasts. Futures traded around $10,280/tonne, down from $10,932 earlier in the week.

Grain Prices Slip

Soybeans (ZS1!): -7.75 cents to $10.59¾/bushel
Corn (ZC1!): -4 cents to $4.59/bushel
Wheat (ZW1!): -5.75 cents to $5.38¾/bushel

Outlook

The unexpected tariff threats have reignited fears of a global trade war just as markets were grappling with the implications of Trump’s sweeping new tax cuts, which are projected to add nearly $4 trillion to the U.S. national debt. With market nerves frayed and volatility returning, investors will be watching closely for signs of diplomatic engagement—or further escalation—heading into next week.

Looking forward, refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team