US equity indexes fell as President Donald Trump's warning to impose tariffs on the European Union and Apple (AAPL) undermined risk sentiment.

The Nasdaq Composite dropped 1.2% to 18,699.1, with the S&P 500 down 0.9% to 5,788.2 and the Dow Jones Industrial Average 0.7% lower at 41,551.3. All sectors except utilities fell intraday, led by technology and consumer discretionary.

Trump said in a social media post that trade talks with the European Union are going nowhere and he is "recommending a straight 50% tariff" on the bloc starting on June 1.

The EU is the US's largest trading partner, accounting for 18% of total trade, according to a note from Stifel. In 2024, US goods exports to the EU totaled $370 billion, up 0.7% from the year prior, while imports from the EU were $606 billion, a 5.1% increase from 2023. As a result, the trade deficit with the EU totaled $236 billion in 2024, a $27 billion uptick from 2023.

Trump threatened to impose at least 25% tariffs on Apple if the technology giant sticks to its policy of manufacturing iPhones outside the US. Apple shares dropped 2.4% intraday, the biggest laggard on the Dow.

"I have long ago informed Tim Cook of Apple that I expect their (iPhones) that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," Trump wrote in a social media post on Friday. "If that is not the case, a tariff of at least 25% must be paid by Apple to the US."

Most Treasury yields fell intraday, with the 10-year down 2.8 basis points to 4.52% and the two-year 2.5 basis points lower at 3.97%.

West Texas Intermediate crude oil futures rose 0.5% to $61.56 a barrel.