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Indexes down: Dow 0.31%, S&P 500 0.39%, Nasdaq 0.71%

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Trump announces 25% tariffs on iPhones not made in US

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Wall Street's 'fear gauge' spikes to over two-week high

(Updates to 2:48 pm ET)

By Chibuike Oguh

NEW YORK, May 23 (Reuters) - U.S. stocks fell on Friday,

on track for a weekly loss, after President Donald Trump

recommended 50% tariffs on European goods, reopening a new front

in global trade tensions and unleashing a fresh wave of market

uncertainty.

All three main Wall Street indexes pared early losses but

each was still set to shed more than 2% for the week. Technology

and consumer discretionary stocks were the biggest losers of the

S&P 500's 11 subsectors. Utilities and consumer staples stocks

gained.

Apple ( AAPL ) touched a two-week low and was down 2.8%

after Trump warned the iPhone-maker it could face potential 25%

tariffs on phones sold to U.S. customers but not manufactured in

the country.

Treasury yields eased from multi-month highs, falling 4.4

basis points to 4.509% for the benchmark U.S. 10-year note.

"If I were to put a headline on today's story, it would be

'Here We Go Again!'" said James St. Aubin, chief investment

officer at Ocean Park Asset Management in Santa Monica,

California.

"This is Trump turning on the temperature on the tariff

conversation with the EU and Apple ( AAPL ). The markets were hoping that

the worst was behind us when it comes to the tariff rhetoric.

But in reality, there's still some smoldering embers when it

comes to the tariff talk," St. Aubin added.

At 2:48 p.m. ET, the Dow Jones Industrial Average

fell 129.67 points, or 0.31%, to 41,729.42. The S&P 500

lost 22.83 points, or 0.39%, at 5,819.18 and the Nasdaq

Composite dropped 134.01 points, or 0.71%, to 18,791.72.

U.S. Treasury Secretary Scott Bessent said Trump did not

believe the EU's trade offers were of sufficient quality. He

also said he hoped the threat of fresh tariffs would "light a

fire under the EU" in negotiations.

Most megacap and growth stocks fell. Amazon ( AMZN ) was

down 0.45% while Nvidia ( NVDA ) dropped 0.48%.

The CBOE Volatility Index, Wall Street's "fear

gauge," hit a more than two-week high and last up 7% at 21.68

points. Semiconductor stocks fell more than 1%.

Deckers Outdoor ( DECK ) slumped almost 20% after the maker

of UGG boots forecast first-quarter net sales below estimates

and said it would not provide annual targets.

Sportswear maker Nike ( NKE ) dropped 2.2%.

Declining issues outnumbered advancers by a 1.19-to-1 ratio

on the NYSE. There were 75 new highs and 61 new lows on the

NYSE.

The S&P 500 posted five new 52-week highs and eight new lows

while the Nasdaq Composite recorded 37 new highs and 92 new

lows.