LIVE MARKETS-Why we can't have nice things: Fresh Trump tariff tantrum sends stocks tumbling

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WHY WE CAN'T HAVE NICE THINGS: FRESH TRUMP TARIFF TANTRUM SENDS STOCKS TUMBLING

U.S. stocks began Friday's session sharply lower as President Trump unleashed yet another round of tariff mayhem even as his massive tax and spending bill, approved on Thursday by the House, moves to the Senate for debate.

All three major U.S. stock indexes slid more than 1% directly after the opening bell, but pared losses after the first few minutes. Tech shares .SPLRCT - particularly chips .SOX - weighed the Nasdaq .IXIC down the most.

All three indexes have set a course to end the pre-Memorial Day weekend with Friday-to-Friday losses.

Aside from tech, consumer discretionary .SPLRCD, regional banks .KRX, transports .DJT and small caps .RUT are also suffering steep declines.

Markets, having largely recovered from Trump's April 2 "Liberation Day" tariff announcements, were once again rattled by the President's erratic trade policy after he threw gasoline on the fire by stating he would recommend a 50% levy on the European Union, and threatened Apple AAPL.O with a 25% tariff on phones made outside the United States.

Apple is last down more than 2%.

Chicago Fed president Austan Goolsbee told CNBC that Trump's proposed 50% tariff on the EU presents a "scary" proposition for supply chains, adding that U.S. firms need a consistent trade policy in place before making big decisions, including investments.

St. Louis Fed President Alberto Musalem and Kansas City Fed President Jeffrey Schmid are participating in a discussion on the U.S. economy and monetary policy, while Fed Governor Lisa Cook is expected to speak on "financial stability" in a virtual Women in Macro Conference.

Here's the lay of the land as of 09:39 EDT:

(Stephen Culp)

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EARLIER ON LIVE MARKETS:

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MARKET UPDATE: EUROPEAN SHARES TUMBLE AS TRUMP TAKES AIM AT EU CLICK HERE

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