Dow falls 280 points, S&P logs weekly loss as Trump trade war escalates

Stocks closed lower Friday, a day after the S&P 500 posted a new record high and President Donald Trump announced a 35% tariff on Canada and threatened higher tariffs across the board.

The Dow Jones Industrial Average lost 279.13 points, or 0.63%, to close at 44,371.51. The S&P 500 slid 0.33% to end at 6,259.75, and the Nasdaq Composite ended the day 0.22% lower at 20,585.53.

Friday’s losses, driven by an escalation in the trade war, came after all three major averages rose during Thursday’s session.

After Thursday’s market close, 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.

“I think the tariffs have been very well-received. The stock market hit a new high today,” Trump told NBC News on Thursday.

The S&P gained 0.3% on Thursday to notch a new record, while the tech-focused Nasdaq finished higher by 0.1% as investors shrugged off any worries around the latest trade developments, including a 50% U.S. tariff on imported copper as well as a 50% tariff on Brazil unveiled this week.

However, on Friday, traders waited for an update from Trump on the European Union tariffs, but none came during market hours. 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.

Friday’s losses pushed the major averages into the red for the week. The Dow Jones Industrial Average ended the week with a 1% decline, while the S&P and Nasdaq notched respective losses of 0.3% and 0.1%.

“This has been a week thus far where the rising rhetoric around trade didn’t adversely affect markets. Investors were able to look through that to a certain extent, but the order of magnitude with one of our most important trade partners that just got dumped in our laps overnight was an eye opener,” said Art Hogan, chief market strategist at B. Riley Wealth Management.

Next week, investors will need to navigate the start of second-quarter earnings reporting season, along with the release of some key inflation data.

Major averages all close week lower

The major stock averages all fell on Friday, closing lower for the week.

On Friday, the Dow Jones Industrial Average lost 279.13 points, or 0.63%, and ended at 44,371.51. The S&P 500 shed 0.33%, finishing at 6,259.75, while the Nasdaq Composite shed 0.22% to settle at 20,585.53.

— Lisa Kailai Han

Markets are becoming increasingly desensitized to tariff shocks, Barclays says

This week’s increased tariff news has resulted in relatively “less pain” for the equity market, versus the major selloffs that were observed in April after President Donald Trump first announced his sweeping universal levies.

“Instead, stocks continued to melt-up, VIX went lower and gold prices declined. So markets have become increasingly de-sensitive to tariff threats, and do not take high tariff rates for granted any more,” Barclays wrote in a Friday note.

But still, this doesn’t mean that equities are in the clear just yet, the bank warned.

“However, while investors may be cheering the peaking tariffs uncertainty, the impact on growth and inflation down the road is yet to be seen. And more ‘punishment’ tariffs, as the 50% rate on Brazil, could challenge the prevailing optimistic view, if they aren’t pure negotiation tactics and followed by de-escalation,” Barclays continued.

— Lisa Kailai Han

Wolfe Research sees a ‘scarcity of secular growth’ in the current market

Now may be an especially difficult time for growth investors to find compelling trades, according to Wolfe Research.

“Our view is that the economy is in a later cycle environment and there’s a scarcity of secular growth in the market,” the firm wrote in a Friday note to clients. “As such, we believe investors will continue to pay up for growth until they believe there is another cyclical upturn in the U.S. economy (perhaps late this year/ 1H ’26).”

The firm added that most companies expected to grow their revenues greater than 10% this year belong to either the technology or communication services sectors.

— Lisa Kailai Han

Regional bank rebound might be overdone, Piper Sandler cautions

Earnings reports next week could put the recent strength of regional banks versus their largest peers to the test, according to Piper Sandler.

Over the past month, the SPDR S&P Regional Banking ETF (KRE) has jumped 8.5%, outperforming JPMorgan Chase and Morgan Stanley. Some of the largest regional banks are performing even better, with Citizens Financial up 15% over the same time period.

“Preference seems to be shifting from universals to the large regionals given the latter’s ‘less stretched’
valuations. Still, despite the solid fundamental backdrop, some are beginning to wonder whether the group has rebounded too far too fast. For our part, we highlight C as the most attractively valued universal, and we call out CFG and KEY as favorites among the regionals,” Piper Sandler analyst R. Scott Siefers said in a note to clients.

— Jesse Pound

Where the major averages stand heading into market close

Here’s where the major averages stand heading into market close:

— Lisa Kailai Han

Energy stocks lead the S&P 500 higher this week

The energy sector, on pace for a 2.6% week-to-date gain, was leading the S&P 500 higher as of Friday afternoon.

The industrials and information technology sectors were the next best weekly performers and both poised for a 0.6% gain.

On the other hand, the consumer staples sector was on track for a 2% week-to-date gain. Financials and communication services stocks also lagged, and were respectively pacing for declines of 1.9% and 1.2%.

— Lisa Kailai Han

Kraft Heinz shares edge up after report it could be planning a breakup

Shares of Kraft Heinz inched up about 1% after the Wall Street Journal reported the consumer product giant may split its grocery business, including Kraft products, into a new entity valued at up to $20 billion.

“As announced in May, Kraft Heinz has been evaluating potential strategic transactions to unlock shareholder value,” a spokesperson at Kraft Heinz said. “Beyond that, we do not comment on rumors or speculation.”

— Yun Li

AMC paces for best day since late May

Following an upgrade to outperform from neutral, shares of AMC were last trading nearly 10% higher.

This put the stock on pace for its best day since late May, when it gained 10.6% in a single session. Up nearly 12% this week, the stock is also set to notch its best weekly performance since mid-April.

— Lisa Kailai Han

Only 8 of the Dow’s constituents are trading higher on Friday

Only eight of the Dow Jones Industrial Average‘s 30 constituents were trading higher on Friday.

As of early afternoon, the index was led higher by Amazon, Nvidia, Chevron and Microsoft, which respectively added 1.3%, 1.3%, 0.7% and 0.6%.

On the other hand, Nike, Visa and Salesforce were the Dow’s biggest laggards. The stocks fell 2.7%, 2.4% and 1.8%, respectively.

— Lisa Kailai Han

Biggest movers midday

• Penn Entertainment – The gaming stock dropped more than 5% following the release of weak regional gaming revenue data. On Friday, Iowa and Indiana both reported year-over-year declines in statewide gaming revenues. For Penn Entertainment revenues specifically, Iowa saw a 14% slide compared to last year, while Indiana saw a 3.7% pullback year over year.
• Levi Strauss — The denim apparel stock rose 10% after second-quarter results topped expectations. Levi Strauss reported 22 cents in adjusted earnings per share on $1.45 billion of revenue. Analysts surveyed by LSEG were looking for 13 cents per share and $1.37 billion. The company also increased its dividend and raised full-year guidance on several key metrics.
• AeroVironment, Kratos Defense & Security — Shares of AeroVironment and Kratos gained 9.5% and 10.7%, respectively, after Defense Secretary Pete Hegseth ordered the Pentagon to fast-track drone production.

Check out the full list here.

— Fred Imbert

Expect volatility to rise as earnings season kicks off, says Piper Sandler

Volatility may have dropped on Thursday, but Piper Sandler expects it to stay elevated going forward.

Still, the investment firm remains overall bullish on stocks from here on out.

“The positive technical backdrop and constructive breadth support a ‘glass half-full’ outlook for the second half of the year,” Piper Sandler wrote in a Friday note. “Volatility may increase as earnings season begins (the VIX is trending lower); however, with next week’s inflation data looming, the trends continue to point higher for equity markets until the technical evidence shows otherwise.”

— Lisa Kailai Han

Bank of America forecasts a robust retail sales report for June

Ahead of June’s retail sales report, Bank of America forecasts that retail spending remained robust last month.

The bank noted that total card spending per household rose 0.2% year-over-year in June, as measured by BAC aggregated credit and debit cards.

“Spending growth picked up in all major retail sales categories that we report,” U.S. economist Aditya Bhave said. “The biggest increases were in gas (due to higher prices), general merchandise, clothing, home improvement and groceries.”

— Lisa Kailai Han

8 stocks in the S&P 500 trade at new 52-week highs

During Friday’s session, eight stocks in the S&P 500 traded at new 52-week highs.

Tickers that hit this milestone included:

• Tapestry trading at all-time highs back to the Coach IPO in October 2000
• Dollar Tree trading at levels not seen since June 2024
• Coinbase trading at levels not seen since April 2021
• GE Vernova trading at all-time highs back to its spin-off from GE in April 2024
• TransDigm Group trading at all-time high levels since its IPO in March 2006
• ANSYS trading at levels not seen since January 2022
• NVIDIA trading at all-time high levels back to its IPO in January 1999
• TE Connectivity trading at all-time highs back to its IPO in 2007

Three stocks in the index traded at new 52-week lows: Tyson Foods, Molina Healthcare and PG&E.

— Christopher Hayes, Lisa Kailai Han

Wedbush stands by bullish equities stance

In a Thursday note, Wedbush maintained its bullish stance on the stock market going forward.

“S&P 500 is nearly overbought and investor sentiment / exposure is rising but we remain sanguine,” the investment firm wrote. “Market breadth is improving, interest rates are likely to move lower and stimulus (front-loaded tax cuts) should help lessen the blow of tariffs and the weakening ‘under-the-hood’ jobs picture.”

Wedbush noted that the S&P 500’s overall breadth is now 43% higher than its historical 10-year average.

— Lisa Kailai Han

Silver miners ETF hits four-year high

On Friday morning, the Global X Silver Miners ETF (SIL) hit a new multi-year high going back to February 2021.

This followed silver’s September-dated futures hitting their highest level since Sep. 22, 2011, also on Friday morning.

Week to date, silver miners are now up 1.9% and pacing for their fourth positive week in five.

— Gina Francolla, Lisa Kailai Han

UBS downgrades Freeport-McMoRan after jump on copper tariffs

UBS downgraded miner Freeport-McMoRan after the company’s shares jumped this week on President Donald Trump’s planned copper tariffs.

UBS raised its price target for Freeport to $50 per share as the miner is expected to benefit from higher prices for U.S. copper futures. But the bank downgraded Freeport to neutral as the catalysts for the stock have largely played out, with shares already up 50% in the past three months and 25% so far this year.

“We see a more balanced risk vs reward and downgrade to Neutral,” UBS analyst Daniel Major told clients in a Friday note.

— Spencer Kimball

Stocks open Friday’s session lower

Stocks gave up their gains from earlier this week by starting off Friday’s session in the negative.

The S&P 500 lost 0.4%, while the Nasdaq Composite slipped 0.3%. Both indexes had notched new record closing highs on Thursday.

The Dow Jones Industrial Average shed 222 points, or 0.5%.

— Lisa Kailai Han

Citi upgrades shares of TE Connectivity to buy, cites auto trend stabilization

A number of catalysts, including stabilization in the auto market, could position TE Connectivity for more growth ahead, Citi said on Friday.

Shares of TE Connectivity jumped nearly 2% in the premarket after analyst Asiya Merchant upgraded the stock to buy from neutral and increased her price target on the name to $200 from $150, implying more than 14% upside from Thursday’s close.

Merchant said that “stabilization trends in automotive market production” could propel shares of TE Connectivity higher in the coming months, noting that S&P recently raised its global light vehicle production (LVP) forecasts for 2025 to 2027. She also sees an opportunity for margin expansion as a result of improving industrial end demand.

“We remain broadly positive on the connector market which is expected to show continued momentum in 2025 following mid-single-digit growth in 2024 (positive book-to-bill ratio), underpinned by strength in IT Datacom (improving broader infrastructure demand, growing AI demand amidst rising cloud capex expectations), improved industrial end market demand outlook (present inclination toward factory automation spending, positive ramp in energy & defense spending), and early signs of a stabilized automotive market (driven by growth in Asia offsetting declines in Europe and NA),” the analyst also wrote.

The upgrade comes as TE Connectivity has already seen meaningful growth this year, with shares rising more than 22% year to date and almost 37% in the past three months. That’s compared to the S&P 500’s gains of nearly 7% in 2025 and more than 17% over the last three months.

— Sean Conlon

AMC shares pop 7% after Wedbush upgrade

AMC saw shares popping 7% in premarket trading Friday after Wedbush upgraded the movie theater chain’s stock to outperform from neutral.

The Wall Street firm said AMC is poised to benefit from a more consistent release slate over the next several quarters. Wedbush also pointed out the company is completing what could be the last major share issuance for the foreseeable future, putting a significant headwind behind it.

Wedbush also hiked its 12-month price target on AMC to $4 from $3.

— Yun Li

Stocks making premarket moves Friday:

Check out the companies making headlines before the bell.

• Levi Strauss — The denim apparel stock rose 7% after second-quarter results topped expectations. Levi Strauss reported 22 cents in adjusted earnings per share on $1.45 billion of revenue. Analysts surveyed by LSEG were looking for 13 cents per share and $1.37 billion. The company also increased its dividend and raised full-year guidance on several key metrics.
• Coinbase, MicroStrategy — Shares of Coinbase and MicroStrategy added 1% and 3%, respectively, as bitcoin reached a fresh all-time high on Friday. The price of the flagship cryptocurrency flew above $118,000 after bitcoin ETFs saw their biggest day of inflows of the year.
• BP — The energy giant said that second-quarter results from its oil trading division should be strong and that the company expects higher upstream production buoyed by U.S. operations. BP warned, however, that lower oil and gas prices would affect its performance.

For more, read here.

— Pia Singh

Vietnam surprised by Trump’s 20% tariff announcement, Bloomberg reports

President Donald Trump surprised Vietnam with the announcement of a 20% tariff rate last week, and the country’s leaders are still looking for a lower rate, Bloomberg News reported Friday, citing people familiar with the matter.

When Trump announced the 20% level on July 2, he said that the two countries had made a “trade deal.“

Vietnamese officials believed they had secured a lower tariff rate had been pushing for something in the range of 10% to 15%, the Bloomberg report said.

— Jesse Pound

Bitcoin extends record to top $118,000

Bitcoin extended its rally on Friday, topping $118,000 for the first time ever.

This came one day after bitcoin exchange-traded funds logged their biggest day of inflows of 2025, at $1.18 billion.

Week to date, bitcoin is on pace to gain nearly 10%.

— Tanaya Macheel, Lisa Kailai Han

Trump says blanket tariff on most trade partners coming

Trump said Thursday that he plans to implement blanket tariffs of 15% or 20% on most trade partners as he brushed off inflation concerns.

“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump told NBC News’ Kristen Welker in a phone call. “I think the tariffs have been very well-received. The stock market hit a new high today.”

There’s currently a 10% blanket tariffs on most U.S. trade partners.

— Fred Imbert

Trump announces 35% tariff on Canada, stocks fall

Trump overnight announced a 35% tariff on imported goods from Canada, citing fentanyl as a reason for the steep duty.

“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. He also threatened higher tariffs if Canada retaliates.

Canadian Prime Minister Mark Carney replied on X, saying “Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries.”

The iShares MSCI Canada ETF (EWC) dropped 0.7% in the premarket Friday.

— Fred Imbert

Stocks making the biggest moves after hours

These are the stocks making the biggest moves in extended trading:

• Levi Strauss — Shares of the denim maker popped about 6% after the company raised its sales guidance, saying it expects it will absorb some tariff costs for now. It also beat earnings and revenue expectations for the most recent quarter, reporting it earned 22 cents per share adjusted versus 13 cents expected. Revenue of $1.45 billion, topped the $1.37 billion estimate, according to LSEG.
• PriceSmart — The discount retailer rose about 7% after reporting higher than expected earnings and revenue for the latest quarter. Earnings per share came in at $1.14, beating analyst estimates by 2 cents, according to LSEG. Revenue of $1.32 billion narrowly topped estimates of $1.31 billion.
• Bitcoin stocks — Stocks tied to the price of bitcoin rose after hours as the the flagship cryptocurrency continued climbing to new records into the evening. Bitcoin was last higher by 4% at $116,031.95, according to Coin Metrics. Bitcoin miners Mara Holdings and CleanSpark each gained nearly 3%. MicroStrategy added 1.8%.

— Tanaya Macheel

Stock futures open little changed

U.S. equity futures opened flat on Thursday evening.

Futures tied to the benchmark S&P 500 fell 0.04%. Nasdaq 100 futures were lower by 0.01%. Dow Jones Industrial Average futures slipped 32 points, or 0.07%.  

— Tanaya Macheel