Dow Futures stabilized on Friday; however, Wall Street remained poised for a losing week as concerns regarding debt elevated Treasury yields. BYD outsold Tesla in Europe for the first time, Apple is offering trade-in discounts in China, while a trade deal between the U.S. and the European Union still seems a far way off. U.S. stock futures stabilized on Friday following earlier declines, as high U.S. Treasury yields continued to impact market sentiment amid the progression of President Donald Trump’s tax bill through Congress. Futures for the Dow increased by 40 points, representing a 0.1% rise, while S&P 500 futures saw an uptick of 3 points, also a 0.1% gain. In contrast, Nasdaq 100 futures experienced a decline of 3 points, equivalent to a 0.1% decrease.

All three indices are poised to experience losses this week, with the broad-based S&P 500 declining nearly 2%, the blue chip Dow Jones Industrial Average approximately 1.9% lower, and the tech-heavy Nasdaq Composite anticipated to see a 1.5% decrease. The House of Representatives approved Trump’s tax and spending bill on Thursday, securing passage by a narrow margin of just one vote. The bill now advances to the Senate, where it is expected to face more intense discussions. Republicans exhibit a general consensus regarding the primary components of the legislation, notably the continuation of Trump’s 2017 tax cuts; however, apprehensions persist regarding the adequacy of spending reductions within the proposal. The nonpartisan Congressional Budget Office projects an increase of $3.8 trillion to the federal government’s existing $36.2 trillion debt burden. Concerns regarding the financial implications of the measure, particularly its effect on national debt and deficit levels, resulted in an increase in long-term Treasury yields. The 30-year Treasury bond yield reached a peak of 5.161%, marking its highest point since October 2023, whereas the 10-year Treasury note surpassed 4.6%.

Electric vehicle market leader Tesla received another blow Friday following the news that Chinese EV giant BYD outsold its U.S. rival for the first time in Europe. A report from analytics firm JATO Dynamics indicated that BYD registered 7,231 battery-powered vehicles in Europe in April, surpassing the 7,165 units registered by Tesla. BYD’s sales persisted even in the face of the European Union’s imposition of significant import tariffs on Chinese EVs last year.

“Although the difference between the two brands’ monthly sales totals may be small, the implications are enormous,” stated Felipe Munoz, a global analyst at Jato Dynamics. “This represents a pivotal juncture for Europe’s automotive sector, especially given that Tesla has dominated the European battery electric vehicle market for several years, whereas BYD only commenced its operations outside of Norway and the Netherlands in late 2022.” Tesla faces challenges with a decline in sales worldwide, marking the company’s inaugural decrease in annual deliveries in 2024.

Global equity markets experienced an uplift following the trade agreement between China and the U.S. earlier this month; however, the prospect of a similar accord between the European Union and Washington remains distant. U.S. trade negotiators are urging the EU to implement unilateral tariff reductions on U.S. goods, asserting that without such concessions, the bloc will not advance in discussions aimed at preventing additional 20% “reciprocal” duties, as reported by the Financial Times on Friday. The Financial Times reported that the European Union has been advocating for a collaboratively established framework text for the negotiations; however, the two parties continue to be significantly divergent in their positions.

In March, the United States implemented a 25% tariff on automobiles, steel, and aluminum imported from the European Union, followed by a 20% tariff on additional EU products in April. The rate was subsequently reduced by half from 20% until July 8, establishing a 90-day period for negotiations aimed at achieving a more extensive tariff agreement. The 27-nation EU has suspended its plans to impose retaliatory tariffs on certain U.S. goods and has proposed zero duties for all industrial goods on both sides.

Apple is offering additional trade-in discounts for new iPhones in China until June 18, according to its website on Friday, in what appears to be the latest attempt by the tech giant to boost sales in this vital market. Apple’s market share in China has contracted notably, decreasing from 15.6% in the first quarter of 2024 to 13.7% in the first quarter of this year. This decline has led the U.S. company to drop to fifth place in the Chinese smartphone market, trailing behind Xiaomi, Huawei, Oppo, and Vivo. This represents a notable decline, given that Apple was formerly the dominant player in the Chinese market. The company is encountering significant challenges due to elevated U.S. trade tariffs on China, which are poised to substantially raise the costs of its devices. More than 90% of Apple’s premier iPhones are produced in China, which also serves as Apple’s largest market beyond North America.

Crude is poised for a weekly decline due to supply pressures. Oil prices experienced a decline on Friday, positioning themselves for their first weekly drop in three weeks. This downturn is attributed to renewed supply pressures, as OPEC+ contemplates a potential increase in production levels. Brent futures experienced a decline of 0.7%, settling at $63.99 per barrel, while U.S. West Texas Intermediate crude futures also decreased by 0.7%, reaching $60.80 per barrel. Over the past week, both benchmarks have declined approximately 2%, reaching their lowest levels in over a week, subsequent to two weeks of increases. The Organization of Petroleum Exporting Countries and its allies, referred to as OPEC+, are considering the potential for an additional production increase at their forthcoming meeting on June 1, as reported by Bloomberg News on Thursday. Delegates referenced in the report indicate that one potential course of action involves a supply increase of 411,000 barrels per day in July, although a definitive decision has yet to be reached. The market is closely monitoring U.S.-Iranian nuclear negotiations, as these discussions may significantly influence the future supply of Iranian oil. The fifth round of negotiations is scheduled to occur in Rome later on Friday.