04:59 PM EDT, 05/23/2025 (MT Newswires) -- US benchmark equity indexes declined on Friday as President Donald Trump's tariff threats against the European Union and Apple ( AAPL ) refueled concerns about a trade war.

The Nasdaq Composite fell 1% at 18,737.2. The S&P 500 dropped 0.7% to 5,802.8, marking the fourth straight day of declines, while the Dow Jones Industrial Average retreated 0.6% to 41,603.1. Among sectors, technology saw the biggest drop, while utilities paced the gainers.

The three benchmarks are down more than 2% each this week. US markets will be closed Monday in observance of Memorial Day.

Trump recommended a 50% tariff rate on the EU, effective June 1, saying that talks with the bloc had stalled. The announcement has "reignited" concerns about a transatlantic trade war, ING Bank said.

Separately, Trump threatened to impose at least 25% tariffs on Apple ( AAPL ) if the tech giant sticks to its policy of manufacturing iPhones outside the US. Apple ( AAPL ) shares declined 3%.

Producing iPhones in the US is not "feasible" due to pricing and supply chain challenges, Wedbush Securities said in a client note, calling the idea a "fairy tale."

"Today's announced threat may be a goad to European leaders to negotiate more quickly with the US," Wells Fargo Investment Institute said in a report. "In any case, the news reiterates our cautious guidance of recent weeks, namely, that new tariffs (and, as today, threats of tariffs) remain material risks to financial markets, especially when the announcements come as surprises."

US Treasury yields were lower, with the 10-year rate decreasing 4.4 basis points to 4.51% and the two-year rate losing nearly one basis point to 3.99%.

Deckers Outdoor ( DECK ) shares sank 20%, the worst performer on the S&P 500. The footwear and apparel company reported its fiscal fourth-quarter results late Thursday. Despite being strong, the results were overshadowed by sales growth deceleration at its Hoka sneaker brand and potential demand weakness from price increases, KeyBanc Capital Markets said in a client note.

KeyBanc lowered its rating on Deckers' stock to sector weight from overweight.

Workday (WDAY) shares slumped nearly 13% on Friday, the second biggest drop on the S&P 500. The cloud human resources company late Thursday logged better-than-expected fiscal first-quarter results and issued a subscription revenue outlook for the ongoing three-month period that matched Wall Street's estimates.

Intuit (INTU) was the best performer on the S&P 500, up 8.1%. The financial technology platform late Thursday posted fiscal third-quarter results that exceeded the Street's estimates.

West Texas Intermediate crude oil was up 0.7% at $61.63 a barrel. For the week, WTI crude futures were expected to report a modest decline.

There are rising expectations of a third straight output increase by the Organization of the Petroleum Exporting Countries and its allies, Saxo Bank Head of Commodity Strategy Ole Hansen said in a report published Friday.

In economic news, new home sales in the US unexpectedly rose in April despite an increase in median prices, government data showed.

Gold was up 2% at $3,389.20 per troy ounce, while silver rose 1.3% to $33.67 per ounce.