WS #6361

Markets closed mixed with the S&P 500 and Nasdaq hitting new record highs, while the Dow slipped. The dominant signal in this window is a major escalation in US-EU trade tensions: President Trump announced a 25% tariff on EU auto imports, effective next week, accusing the bloc of violating the trade agreement. This is corroborated by multiple sources (Bloomberg, Al Jazeera, GDELT, Reddit) and represents a significant escalation from the prior 15% rate. The tariff targets European automakers (BMW, Mercedes, VW) and could raise vehicle costs for US consumers. Separately, Spirit Airlines is expected to cease operations around 3 a.m. ET Saturday after bailout talks stalled, per WSJ and multiple cross-sources. Trump said he is still considering a taxpayer-funded deal. On the geopolitical front, oil prices fell on hopes of US-Iran talks via Pakistan, but major US oil companies warn of an inflection point for higher prices if the Strait of Hormuz closure persists. The Pentagon signed classified AI deals with seven tech giants, excluding Anthropic. In corporate news, Origin Materials announced a wind-down and dissolution, while InspireMD initiated a voluntary recall of its CGuard Prime 135cm stent system. Alphabet closed at a new all-time high of $385.69. The prevailing macro narrative is STABLE with ESCALATION in US-EU trade tensions.