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Stocks dropped Friday, a day after the S&P 500 posted a new record high, after President Donald Trump announced a 35% tariff on Canada and threatened higher tariffs across the board.
The Dow Jones Industrials sank 279.13 points to conclude Friday at 44,371.51.
The S&P 500 lost 20.71 points to 6,259.75.
The NASDAQ Composite dipped 45.14 points to 20,585.53.
Friday’s losses pushed the major averages into the red for the week. Next week, investors will need to navigate the start of second-quarter earnings reporting season, along with the release of some key inflation data.
Trump cited fentanyl as a reason for higher Canada duties, adding that they would go higher if the country retaliates. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump said in a letter posted on Truth Social.
Trump then told NBC News he was planning blanket tariffs of 15% to 20% on remaining countries, higher than the current 10% standard that investors had grown comfortable with.
Traders were also waiting on a trade update from Trump on the European Union this week, but it’s not clear whether the president will post a letter with a new rate like he did with Canada or simply give an update on progress of ongoing deal talks.
Next week, investors will need to navigate the start of second-quarter earnings reporting season, along with the release of some key inflation data.
Prices for the 10-year treasury fell, raising yields to 4.42% from Thursday’s 4.35%. Treasury prices and yields move in opposite directions.
Oil prices improved $2.02 to $68.59 U.S. a barrel.
Gold prices jumped $46.00 at $3,371.70 U.S. an ounce.
