But Trump didn't stop with Brussels. He followed up with a direct warning to Apple, threatening the company with a 25% tariff on iPhones not produced in the United States. "I have long ago informed Tim Cook of Apple that I expect their iPhones... will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote. "If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.” The tech giant, which relies on an intricate global supply chain rooted in Asia, has not commented - but markets took notice. Apple shares slumped in premarket trading, dragging the broader tech sector with them.

Together, the two announcements mark a dramatic escalation in Trump's second-term trade strategy - one increasingly untethered from negotiation and rooted in coercion. With major stock indexes now bracing for their worst open in months, the administration is making it clear: global supply chains must come home, and allies are fair game in the new tariff regime. Whether this strategy delivers results or further destabilizes an already anxious market remains to be seen. But investors now face a reality where trade policy is dictated in real-time by presidential posts - and the consequences arrive just as swiftly.

In other news, Trump's sweeping tax and spending bill cleared a key hurdle this week with a narrow House vote, inching closer to becoming law. While Republicans hailed it as a fulfillment of Trump's economic agenda, markets are reacting with greater caution. The bill, if enacted, is projected to add nearly $4 trillion to the federal debt over the next decade - an alarming figure in a fiscal landscape already strained by mounting obligations and rising interest costs. Investors are now weighing the cost of this legislative victory against the potential erosion of America's long-term creditworthiness. 

As the president's "super bill" heads to the Senate, where debate is expected to be fierce, U.S. bond markets have begun to flash warning signals. The message from Wall Street is clear: investors are watching Washington's fiscal credibility - and they're not reassured.

Veteran market strategist Ed Yardeni, writing in his Thursday note, warned that Treasury Secretary Scott Bessent "has his work cut out for him as his boss, President Donald Trump, pushes his deficit-bloating bill through the Senate.” Yardeni argued that regaining market trust will require Bessent to show fiscal restraint while the economy is still expanding - a challenge that would become "exponentially harder" in the event of a downturn.

Federal Reserve Governor Christopher Waller floated the possibility of rate cuts in the second half of 2025 - contingent, he said, on progress in tariff negotiations. A rate cut could, in theory, help soothe debt jitters. But that depends on inflation remaining contained, and so far, the administration's policy mix has tilted inflationary. Whether for better or worse, Trump's White House is leaning into protectionism and populism - two forces that tend to stoke prices, not suppress them.

Meanwhile, a separate flashpoint is emerging in public health and corporate accountability. The administration released its MAHA (Make America Healthy Again) report Thursday, sharply critical of major agri-food and chemical firms. The document blames companies like Bayer, BASF, Syngenta, and Kraft for health issues among American youth and accuses industry-backed research of lacking scientific integrity. Analyst Pierre-Yves Gauthier of AlphaValue called the report "damning” and noted that Trump appears to endorse its conclusions - suggesting that agrochemicals could be next on the administration's regulatory hit list, following the pharmaceutical sector.

Markets in the Asia-Pacific region showed tentative signs of stabilization Friday, though gains were modest, with no major index rising more than 0.5%. Hong Kong was the lone standout, posting mild weekly gains. European indices are in the red, with the Stoxx Europe 600 down 1.7%.

Today's economic highlights:

On today's agenda: Germany's quarterly adjusted GDP; retail sales excluding automotive fuel in the United Kingdom; consumer confidence in France; in the United States, new home sales. See the full calendar here.

  • Dollar index: 99,330
  • Gold: $3,353
  • Crude Oil (BRENT): $63.28 (WTI) $60.0
  • United States 10 years: 4.44%
  • BITCOIN: $108,000

In corporate news:

  • Bank of America reveals a 5.58% stake in National Grid.
  • Amazon shareholders reject proposal to split CEO and Chair roles; Pershing Square buys Amazon shares.
  • Apple offers extra trade-in discounts in China, expands supply chain in India with $1.5 billion Foxconn plant.
  • Microsoft's $69-billion acquisition of Activision Blizzard sees FTC case dropped.
  • The FTC drops its case against Microsoft's acquisition of Activision Blizzard.
  • Goodyear sells its chemical subsidiary to Gemspring Capital for $650 million.
  • Walt Disney postpones the release of the next two Marvel Avengers films.
  • Dillard's is suing Wells Fargo for abandoning their credit card partnership.
  • Elon Musk does not consider it "necessary” to buy Uber for his robotaxis.

Analyst Recommendations:

  • Charles River Laboratories International, Inc.: Redburn Atlantic downgrades to buy from neutral with a target price reduced from USD 188 to USD 182.
  • Crowdstrike Holdings, Inc.: DZ Bank AG Research downgrades to sell from buy with a target price of USD 370.
  • Deckers Outdoor Corporation: KeyBanc Capital Markets downgrades to sector weight from overweight. Evercore ISI downgrades to in-line from outperform with a target price reduced from USD 235 to USD 110.
  • Radian Group Inc.: Compass Point Research & Trading downgrades to neutral from buy with a target price raised from USD 34 to USD 37.
  • Waste Management, Inc.: JP Morgan upgrades to overweight from neutral with a target price raised from USD 225 to USD 277.
  • Amd (Advanced Micro Devices): CITIC Securities Co Ltd maintains its buy recommendation and reduces the target price from 184 to USD 129.
  • Analog Devices, Inc.: Evercore ISI maintains its outperform recommendation and raises the target price from USD 231 to USD 280.
  • Apellis Pharmaceuticals, Inc.: JP Morgan maintains its overweight recommendation and reduces the target price from 45 to USD 35.
  • Boeing: Vertical Research Partners maintains its hold recommendation with a price target raised from 160 to USD 205.
  • Cleveland-Cliffs Inc.: Citigroup remains neutral recommendation with a price target reduced from USD 11 to USD 7.50.
  • First Solar, Inc.: Jefferies maintains its hold recommendation with a price target raised from USD 127 to USD 157.
  • Icon Public Limited Company: Redburn Atlantic maintains a neutral recommendation with a price target reduced from USD 232 to USD 144.
  • Intuit Inc.: Wolfe Research maintains its outperform recommendation and raises the target price from USD 725 to USD 875.
  • Iqvia Holdings Inc.: Redburn Atlantic maintains its buy recommendation and reduces the target price from 255 to USD 188.
  • Okta, Inc.: Jefferies maintains its hold recommendation with a price target raised from USD 110 to USD 135.
  • Ralph Lauren Corporation: Barclays maintains its overweight recommendation and raises the target price from USD 260 to USD 321.
  • Republic Services, Inc.: JP Morgan maintains its neutral recommendation and raises the target price from 229 to USD 275.
  • Rubrik, Inc.: Baird maintains its outperform recommendation and raises the target price from USD 76 to USD 95.
  • Seagate Technology Holdings Plc: Morgan Stanley maintains its overweight recommendation and raises the target price from USD 99 to USD 140.
  • The Gap, Inc.: Citigroup maintains its buy recommendation and raises the target price from USD 22 to USD 33.
  • Vistra Corp.: Goldman Sachs maintains its neutral recommendation with a price target raised from 134 to USD 164.
  • Western Digital Corporation: Morgan Stanley maintains its overweight rating and raises the target price from USD 54 to USD 70.