US stock futures retreated on Friday after President Trump officially hit virtually every US trading partner with sweeping tariff hikes, pushing ahead with his plan to remake the global trade order.
Dow Jones Industrial Average futures (YM=F) dropped 0.4%, while those on the S&P 500 (ES=F) also fell 0.4%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) dropped roughly 0.5%, on the heels of a losing day for the major US gauges.
Markets are assessing the reshaped US trade landscape after President Trump on Thursday hit dozens of countries — including crucial partners Taiwan and India — with steep new tariffs. His executive order formally authorized a hike in levies on Canada to 35%, to go into effect on Friday. Most of the other “reciprocal” rates range from 15% to 40% (though the baseline remains 10%) and will be implemented in seven days.
The White House also confirmed details of trade agreements negotiated by some trading partners before the Aug 1. deadline for “Liberation Day” tariffs to hit. But Trump said the implementation of the hiked levies will be pushed back by seven days, opening up scope for more talks.
Read more: The latest on Trump’s tariffs
A blockbuster week on Wall Street is set to end not just with trade turmoil but also with the arrival of the July jobs report, which is expected to show hiring slowed while unemployment ticked higher. The key indicator of US economic health will be closely watched by the Federal Reserve, whose preferred inflation gauge on Thursday showed signs of increasing price pressures.
Apple (AAPL) and Amazon (AMZN) reported earnings after the bell on Thursday. Apple stock rose after its results beat expectations, boosted by surprisingly strong iPhone sales. Amazon’s report also topped estimates, but the performance of its cloud business caused its stock to tumble.
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