U.S. futures showed signs of stabilization on Friday, although major indices remained on track for weekly losses amid growing concerns over national debt levels. Meanwhile, Chinese automaker BYD overtook Tesla in European EV sales for the first time, Apple introduced iPhone trade-in discounts in China to reclaim lost market share, and oil prices declined on renewed supply fears.

U.S. Futures Steady as Debt Concerns Weigh on Markets

After a week of declines, U.S. equity futures held mostly flat early Friday. At 03:20 ET, Dow Jones futures edged up by 40 points (0.1%), S&P 500 futures added 3 points (0.1%), while Nasdaq 100 futures dipped slightly by 3 points (0.1%).

Despite the pause, all three indices remain on pace for a losing week, pressured by surging Treasury yields. The S&P 500 is currently down nearly 2%, the Dow around 1.9%, and the Nasdaq off by 1.5%.

Investor anxiety has intensified following the narrow passage of President Donald Trump’s tax and spending bill in the House, which now moves to the Senate. While the bill includes extended tax cuts from 2017, critics point to insufficient spending reductions. The Congressional Budget Office projects the measure could add $3.8 trillion to the already $36.2 trillion U.S. national debt.

Rising debt worries have pushed yields higher: the 30-year Treasury reached 5.161%, a peak not seen since October 2023, and the 10-year rose above 4.6%.

BYD Tops Tesla in European EV Sales

Chinese electric vehicle manufacturer BYD surpassed Tesla in monthly sales across Europe for the first time, signaling a major shift in the region’s EV landscape.

According to JATO Dynamics, BYD registered 7,231 battery-electric vehicles in Europe in April, compared to Tesla’s 7,165. This milestone is significant, given that Tesla has long dominated the European EV market and BYD only began full-scale operations outside of Norway and the Netherlands in late 2022.

JATO analyst Felipe Munoz called the development a “watershed moment,” especially considering BYD’s sales resilience amid EU tariffs on Chinese EV imports.

Tesla continues to face global sales challenges, recording its first annual drop in deliveries in 2024.

U.S.-EU Trade Talks Remain Stalled

Efforts to finalize a trade agreement between the U.S. and the European Union are making little progress, according to the Financial Times. While recent developments between the U.S. and China have boosted markets, a breakthrough with Europe appears unlikely in the near term.

U.S. officials are pressuring the EU to reduce tariffs on American goods, warning that without concessions, retaliatory duties may follow. The U.S. recently imposed steep tariffs – 25% on European autos, steel, and aluminum, and 20% on other goods, though that rate has been temporarily halved through early July to allow room for negotiations.

In response, the EU has paused its own retaliatory tariff plans and proposed eliminating industrial tariffs on both sides, but significant gaps remain between the negotiating parties.

Apple Slashes iPhone Prices in China

Apple (NASDAQ:AAPL) is offering additional trade-in incentives for iPhones in China through June 18, marking another attempt to boost sales in what remains its most crucial international market.

The U.S. tech giant’s market share in China slipped from 15.6% to 13.7% year-over-year in Q1 2024, pushing it to fifth place behind Xiaomi, Huawei, Oppo, and Vivo.

Apple’s troubles in China are compounded by U.S. trade tariffs and its heavy reliance on Chinese manufacturing – over 90% of its iPhones are assembled in the country. The company hopes that aggressive promotional efforts can help it regain momentum.

Oil Slips as Supply Concerns Resurface

Crude oil prices declined Friday, set for their first weekly loss in three weeks amid talk of a potential production increase by OPEC+.

At 03:20 ET, Brent crude was down 0.7% at $63.99 a barrel, while WTI futures dropped 0.7% to $60.80. Both benchmarks are down about 2% for the week.

OPEC+ members are reportedly considering boosting production by 411,000 barrels per day starting in July, according to sources cited by Bloomberg. While no final decision has been made, the possibility has added pressure to oil markets.

Traders are also closely watching nuclear negotiations between the U.S. and Iran, as any breakthrough could affect Iranian oil exports. The fifth round of talks is scheduled to be held in Rome later today.

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