US stock indexes dipped on Friday as fears over a trade war escalated ahead of the G7 summit in Canada and shares of Apple and its suppliers fell, following a report that the iPhone maker was planning to produce fewer phones this year.
Apple Inc was down 1.6 percent after a newspaper report said the company had asked its supply chain to manufacture about 20 percent fewer components for iPhones in the latter half of 2018. Investors were also cautious ahead of a contentious G7 summit in Canada, with US President Donald Trump lashing out at Canada and the European Union on Friday, raising the specter of a trade war.
"I suspect that expectations from the G7 have been reduced," said Eric Wiegand, senior portfolio manager at US Bank Private Wealth Management.
"Expectations have been very modest that there will be much of a productive nature to these meetings, the tether of the meeting will most likely mirror the heightened trade tensions."
Trade war fears have rattled the broader market through the year as Trump's "America First" policies risk creating a schism between US and its trade partners.
Despite these worries, the S&P 500 technology index has far outperformed the broader market and went on a six-day rally before taking a pause on Thursday and Friday.
After touching record highs in the week, the tech-heavy Nasdaq Composite index also fell on Friday, with investors moving money from technology and small caps to the Dow and S&P.
At 11:23 a.m. ET, the Dow Jones industrial average was down 6.89 points, or 0.03 percent, at 25,234.52, the S&P 500 was down 1.91 points, or 0.07 percent, at 2,768.46 and the Nasdaq Composite was down 11.52 points, or 0.15 percent, at 7,623.56.
Investors are eyeing next week's US Federal Reserve meeting on interest rates and an unprecedented US-North Korea summit scheduled for June 12 in Singapore.