US equity futures lost ground overnight after Donald Trump announced a fresh round of tariffs, this time slapping a 35% levy on Canadian imports starting 1 August.
S&P 500 futures slipped 0.48%, while the tech-heavy Nasdaq 100 dropped 0.57%. Dow futures were down 0.45%, shedding 202 points.
The move followed another record-setting session for stocks. The S&P 500 climbed 0.27% on Thursday, the Nasdaq edged up 0.09%, and the Dow gained 0.43%.
Risk appetite remained strong despite escalating trade rhetoric, including Trump’s announcement of 50% tariffs on copper imports and on Brazilian goods. More may be coming. Trump hinted letters to Canada and the EU outlining further proposals could be sent as soon as today.
The rally was sparked midweek when Nvidia briefly touched a $4 trillion valuation, reigniting momentum across the tech space. Consumer discretionary led Thursday’s gains, with investors showing little hesitation in chasing performance.
Still, not everyone’s convinced the rally has legs. Under the surface, questions remain about whether the macro picture supports this kind of enthusiasm. Rate cuts and stronger economic data may be needed to turn a tactical bounce into something more durable.
The major indices are on track to end the week narrowly mixed. The Dow is just below the flat line, while the S&P 500 and Nasdaq are clinging to modest gains of less than 1%.