US Stocks Slide, S&P 500 Falls As Tariff Tensions Hit Markets/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks dipped Friday as the Trump administration escalated tariff threats against Canada, unsettling markets. The S&P 500 retreated from record highs, while investors braced for earnings season. Bitcoin surged past $118,000 amid optimism in risk assets.
US Stocks Retreat Quick Looks
- S&P 500 down 0.4% after record highs.
- Dow slips 257 points; Nasdaq edges lower.
- Trump threatens 35% tariffs on Canadian imports.
- Tariffs on copper, pharma also under consideration.
- Levi Strauss gains after strong earnings report.
- Earnings season kicks off next week for major banks.
- Bitcoin hits new high above $118,000 amid crypto momentum.
- European and Asian markets mostly lower.
US Stocks Slide, S&P 500 Falls As Tariff Tensions Hit Markets
Deep Look
Wall Street pulled back from its record-setting highs Friday as President Donald Trump’s renewed trade threats rattled investor confidence, dragging major U.S. indexes lower and setting the stage for the first weekly loss in nearly a month.
By midmorning, the S&P 500 had slipped 0.4%, a day after notching a fresh all-time high. The Dow Jones Industrial Average fell by 257 points, or 0.6%, while the tech-heavy Nasdaq Composite edged down 0.2% following its own record close. All three indexes were poised to end the week in negative territory, reflecting growing jitters over the Trump administration’s aggressive trade maneuvers.
The sell-off came on the heels of President Trump’s announcement Thursday that his administration would hike tariffs on a range of imported goods from Canada to as high as 35%, escalating tensions between the two North American allies. The president conveyed his intentions in a letter to Canadian Prime Minister Mark Carney, a move that dramatically raises stakes from the existing top rate of 25% imposed earlier in March.
The White House has positioned the tariff hikes as leverage to extract new trade deals from partners around the globe, including close allies like Canada. Initially, the administration set a July 9 deadline for countries to finalize trade agreements or face stiffer tariffs. But with only two agreements secured so far—one with the United Kingdom and another with Vietnam—the White House extended the window for negotiations to August 1.
Further unsettling markets, Trump also floated the possibility of imposing tariffs as high as 200% on pharmaceutical imports and announced a new 50% tariff on copper, matching the rates already levied on steel and aluminum.
Despite the saber-rattling, Wall Street has maintained a surprisingly steady trajectory in recent weeks, with stocks marching to new highs even as the administration’s trade rhetoric has intensified. Many investors appear to have become more comfortable navigating the volatility surrounding Trump’s tariff threats after the whipsaw market reactions earlier in the year.
Bond markets also reflected shifting sentiment on Friday. Yields on U.S. Treasurys mostly rose, signaling expectations of higher government borrowing costs. The yield on the benchmark 10-year Treasury climbed to 4.40%, up from 4.34% on Thursday, reflecting investor uncertainty about how trade tensions could influence inflation and interest rates.
Beyond trade policy, investors are turning their attention toward the upcoming earnings season, set to kick into high gear next week. Corporate results over the next few weeks will offer fresh insights into how companies are navigating inflation, higher interest rates, and global trade headwinds.
Among early earnings standouts, Levi Strauss surged 8.2% Friday after delivering quarterly results that easily surpassed Wall Street’s estimates for both sales and profits. The iconic jeans maker also raised its full-year outlook, citing strong consumer demand despite acknowledging that elevated tariffs could increase its costs in the months ahead.
Looking ahead to next week, major banks like JPMorgan Chase, Wells Fargo, and Citigroup are slated to report results on Tuesday. Analysts tracked by FactSet expect earnings growth for companies in the S&P 500 to reach roughly 5% for the second quarter, which would mark the slowest pace of expansion since the final quarter of 2023. Still, any surprises in bank earnings or guidance could set the tone for broader market performance.
Elsewhere in corporate news, T-Mobile shares held steady after the Justice Department announced it would not block the wireless carrier’s proposed $4.4 billion acquisition of U.S. Cellular. That deal, initially unveiled more than a year ago, had been under antitrust scrutiny by the Justice Department during President Joe Biden’s administration. Shares of U.S. Cellular jumped 2.7% on the news.
Overseas, European stock indexes mostly traded lower in the wake of losses across Asia, reflecting the global ripple effects of renewed trade tensions and investor caution ahead of U.S. earnings reports.
Meanwhile, the cryptocurrency market continued to defy gravity. Bitcoin soared to a new all-time high Friday, briefly surpassing $118,000 before easing slightly to trade around $117,600, according to Coindesk. The latest rally comes amid surging optimism for risk assets, boosted in part by semiconductor giant Nvidia’s meteoric rise to a $4 trillion market valuation.
Adding fuel to bitcoin’s momentum is anticipation surrounding “Crypto Week” in the U.S. Congress, scheduled for July 14. Lawmakers are expected to debate a suite of bills that could define the regulatory landscape for digital assets, a development that could shape the next chapter of cryptocurrency’s integration into the broader financial system.
Despite trade tensions and earnings uncertainties, some market watchers remain cautiously optimistic. “Investors are looking for clarity, both on the trade front and on corporate earnings,” said Michael Hewson, chief market analyst at CMC Markets. “But the volatility we’re seeing is a reminder that the market can still be knocked off balance by policy surprises.”
With the week drawing to a close, traders are left weighing Trump’s unpredictable trade tactics against robust corporate fundamentals and a red-hot crypto rally. For now, the path forward remains as uncertain—and as closely watched—as ever.
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