S&P 500: US Stocks Slide as Bitcoin Soars, Tariff Threats Fuel Market Volatility

Trump’s Tariff Threats: Will the Rally Survive Policy Uncertainty?

Trump’s overnight announcement of a 35% tariff on Canadian goods, citing fentanyl concerns, has rattled markets that previously shrugged off trade tensions.

The president’s escalation to threaten 15-20% blanket tariffs on remaining countries – higher than the 10% standard investors had grown comfortable with – marks a significant policy shift.

The iShares MSCI Canada ETF (EWC) dropped 0.7% in premarket trading, while Canadian stocks including Cameco and TD Bank declined.

Citi’s U.S. equity strategy director Drew Pettit warned that sustained rallies require both resilient macro data and Federal Reserve rate cuts.

“Structurally, we’re not there yet. Fundamentally, I don’t think we’re there yet,” he noted, emphasizing the need for both conditions to support continued sector outperformance.

Bitcoin Breaks $118,000: Which Stocks Are Riding the Wave?

Bitcoin extended its record-breaking rally to top $118,000 for the first time, following the biggest day of ETF inflows in 2025 at $1.18 billion. The flagship cryptocurrency is on pace for nearly 10% gains week-to-date, driving significant moves in related equities.