US index futures and Apple tumble on Trump warningUS index futures and Apple shares tumbled in premarket as Trump warned the company of 25% tariffs if manufacturing of iPhones is not moved to the United States.
This is what Trump posted on social media:
"I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!"
Let's see if the recent stall in the rally will now turn into more than just a pause.
The other big concerns remains over US Treasuries and rising long term bond yields. Long-dated US Treasuries managed to claw back some of their recent losses yesterday and that helped the markets a little. But if the bond market selling resumes then yields will remain elevated and pressurize all sorts of risk assets. Without a fundamental shift in US fiscal policy, the implications of rising US borrowing costs and widening fiscal deficits means the US is on an unstable fiscal policy path, which could lead to heighten market volatility.
By Fawad Razaqzada
