US market news: Wall Street shares pulled back from their record highs on Friday as investors processed President Donald Trump’s most recent tariff announcements while also looking forward to significant earnings reports later this month.
In his ongoing critique of trade, Trump indicated the possibility of imposing 35% tariffs on Canada and mentioned that his administration would soon reveal tariffs on the European Union.
The S&P 500, which represents a wide array of stocks, closed down 0.3% at 6,259.75, retreating from the all-time high set on Thursday. The Dow Jones Industrial Average declined by 0.6% to 44,371.51, and the tech-heavy Nasdaq Composite Index dropped 0.2% to 20,585.53 after achieving its own record on Thursday.
Levi Strauss & Co. saw its stock surge 11.2% following its announcement of higher profits alongside a 6.4% increase in revenues. The denim brand particularly enjoyed robust growth in both the Americas and Europe.
Earnings season accelerates next week as major banks like JPMorgan Chase, Wells Fargo, and Citigroup are set to announce their results on Tuesday.
The recent rise in Bitcoin’s price aligns with the optimistic trend seen across risk assets and coincides with Nvidia reaching a $4 trillion market valuation. This surge happens just days before the US Congress’s Crypto Week on July 14, where lawmakers will discuss various bills that could establish the regulatory landscape for the industry.
Trump Tariffs
President Donald Trump stated in a letter on Thursday that he plans to increase taxes on numerous imported goods from Canada to 35%, which further widens the divide between the longstanding North American partners. The correspondence addressed to Canadian Prime Minister Mark Carney represents a significant rise from the initial top tariff rate of 25% that Trump implemented in March.
This action is the latest strategy by the White House to leverage the prospect of higher tariffs on imported goods into the US as a means of negotiating new trade agreements with countries worldwide, including historically close allies like Canada.
Initially, the administration had set Wednesday as a deadline for nations to strike deals with the US or face substantial tariff hikes. However, with only two trade agreements announced since April—one with the United Kingdom and another with Vietnam—the negotiation period has now been extended to August 1.
Additionally, Trump suggested this week that he might impose tariffs up to 200% on pharmaceutical products and implement a 50% tariff on copper imports, aligning them with the rates applied to steel and aluminum.
(With inputs from AP, and AFP)
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
