Summary
In a surprise move on May 23, 2025, former President Donald Trump targeted Apple and CEO Tim Cook with a tariff ultimatum: manufacture iPhones in the U.S. or face a 25% tariff. The post sent AAPL stock plummeting over 4%, breaking below key support levels and all major moving averages. With a bearish engulfing candle and volume spike, the technical damage is clear—and until there’s clarity on whether the tariff threat will materialize, Apple remains at high risk. Traders are advised to stay cautious, as the stock is now caught in the crossfire of politics and policy.
Market Recap
Market Movers
No market movers this week..
📚 Deep Dive 📚
It was shaping up to be a relatively quiet session—futures flat, yields drifting, and Bitcoin just shy of record highs. Then… Trump dropped the hammer.
At 7:20 AM ET, former President Donald Trump took to Truth Social with a strongly worded post directed at Apple and CEO Tim Cook. The message? A clear ultimatum: if iPhones sold in the U.S. aren’t built on American soil, then a 25% tariff must be paid to the U.S. government.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
The post sent shockwaves through the market. AAPL shares plunged instantly—down $10 to $193, wiping out over 4% in value and erasing tens of billions in market cap within minutes.
📉 Technical Breakdown: This sudden drop pushed AAPL below all major moving averages on the daily chart—a significant technical shift. The breach under the 50-day and 200-day moving averages suggests potential for further downside if buyers don’t step in quickly to defend this level.
The chart confirms the technical damage:
- Bearish engulfing candle on the hourly
- Volume spike on the breakdown
- Loss of key support zone near $200
This was not a typical market-driven move—this was headline risk at its finest. And it’s a stark reminder of how vulnerable even the largest companies can be to geopolitical and policy shockwaves.
🔍 What’s Next?
Until clarity emerges on whether this tariff threat is credible, enforceable, or just bluster, Apple remains vulnerable to further downside. With the stock now technically broken, traders should proceed with caution. Any rallies may be sold into unless we see a sharp reversal and reclaim of the moving averages.
Investors may want to stay patient here. This isn’t a typical dip—it’s a direct hit from the policy front, and those tend to linger.
📌 Bottom Line:
"Apple is now a battleground stock. It’s no longer just about earnings or innovation—it’s now caught in the political crosshairs. We’ll continue to monitor price action, headlines, and institutional flow closely. Stay tactical." — Carlos G.
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