AP Business Writer Alex Veiga
As the Trump administration escalates tariff threats on Canada, U.S. stocks trade at noon Friday, pulling the market back from an all-time high.
The S&P 500 has dropped by 0.3% per day since setting a record high. The benchmark index is at a pace that posts first weekly losses in three weeks.
The Dow Jones industrial average fell 331 points (0.7%) as of 12:16 PM Eastern time, with Nasdaq’s composite slipping 0.1% per day since its all-time high. Both indices are within a significant distance from closing with weekly losses.
Bond yields rose. The 2010 Treasury yield rose to 4.41% from 4.34% in the second half of Thursday.
In a letter Thursday, Trump said he would raise taxes on many imports from Canada to 35%, deepening the rift between longtime North American allies. A letter to Canadian Prime Minister Mark Carney is an aggressive increase against the top 25% tariff rates Trump first imposed in March.
The move is the latest bid by the White House to use the higher tariff threats on goods imported into the United States in the hopes of securing new trade agreements with countries around the world with historically close trading partners like Canada.
The administration initially set a deal with the US on Wednesday or as a country deadline facing a massive rise in tariffs. However, two trade deals were announced starting in April, the other was a trade agreement between the UK and Vietnam, and the window of negotiations was extended until August 1st.
Trump this week imposed a 200% tariff on drugs and a 50% tariff on copper imports, surfaced in line with fees charged with steel and aluminum.
The first development of Trump’s tariff policy in spring-covered financial markets. But Wall Street has been relatively stable in recent weeks, with stocks steadily rising to record levels that suggest that markets are largely adapting to Trump’s rapidly changing tariff unpredictability. However, some market watchers are not very clear.
The market response to Trump’s tariff escalation this week “is surprisingly calm. The market seems to believe Trump will retreat again,” wrote Paul Ashworth, North American economist at Capital Economics, on Friday. “We’re not that sure.”
Trade policy aside, the market is currently set to focus on at least some companies as it reports quarterly revenue over the coming weeks.
On Friday, Levi Strauss jumped 9.2% after jeans makers easily beat Wall Street sales and profit targets and raised their full-year forecasts despite expecting higher costs from tariffs.
Pricesmart rose 4.6% per day, when Warehouse Club operators said they were considering expanding to Chile, providing solid third quarter results.
The revenue season will move to High Gear next week with JPMorgan Chase, Wells Fargo and Citigroup reporting results on Tuesday.
Wall Street analysts predict that S&P 500 companies will deliver 5% growth in second quarter revenues. This will be the lowest rate since the fourth quarter of 2023.
Stocks in the financial sector, healthcare and telecommunications services firms were the biggest weight in the market on Friday.
Visa fell 2.4%, Gilead Sciences fell 3.7%, and META fell 1%.
Several big tech stocks have risen. Chimpaker Nvidia rose 1.2%.
Several airline stocks came the day after they encouraged quarterly results for Delta, which began gatherings in the sector. The Delta fell 1.9%, United fell 4.2%, and Americans fell 4.2%.
Elsewhere in the market, T-Mobile’s shares slipped 0.7% after the Justice Department announced Thursday it would not prevent it from blocking a $4.4 billion acquisition of US mobile phones. The deal, announced more than a year ago, was under antitrust scrutiny by the Department of Justice under President Joe Biden’s administration.
US mobile phone stocks rose 3.2%.
Shares in airline Redcat Holdings jumped to 19.8% after issuing an order issued an order aimed at strengthening drone production and deployment.
The European stock index has been significantly lower, except for a pretty low finish in the Asian market.
Meanwhile, Bitcoin climbed on another all-time Friday, shortening it to $118,000 in a short time before easing to around $116,683.
Bitcoin’s price rise comes amid a bullish momentum across risky assets, consistent with Nvidia’s surge and $4 trillion valuation. Also, a few days before the July 14th Congressional Cryptography Week, we will discuss a series of bills that allow lawmakers to define industry regulatory frameworks.
Original issue: July 11, 2025 8:43am EDT
