Apple Earnings Drive Tech Records Amid New European Auto Tariffs

US equity markets exhibited a sharp divergence on Friday, with the Nasdaq-100 and S&P 500 scaling record peaks while the Dow Jones Industrial Average slipped. The split was primarily driven by the contrasting performance of two heavyweights: Apple and Amgen. Apple shares surged 4.5% following a robust earnings report, with outgoing CEO Tim Cook highlighting sustained demand for the iPhone 17 and Mac computers. Given Apple's 10% weighting in the Nasdaq-100 and 6% in the S&P 500, the gain provided significant upward momentum for the market-cap-weighted indices, bringing Apple close to its first record close since December 2025. Conversely, the price-weighted Dow Jones Industrial Average was dragged down by Amgen, which saw its shares fall 5.7%. Despite beating earnings estimates, the biotech firm provided modest guidance targets, which weighed heavily on the index due to its high share price. Broader market volatility was triggered by the Trump administration's announcement of a 25% tariff on European automobiles. Simultaneously, energy markets softened as oil prices declined—evidenced by a 3.3% drop in the USO fund—following a new peace proposal from Iran to mediators, reducing immediate tensions in the Strait of Hormuz. Despite the intraday divergence, the overall trend remains positive following a strong April. Analysts view Apple's performance as a key indicator of consumer resilience, suggesting that the underlying fundamental strength of the tech sector outweighs the technical fluctuations of the Dow.