The impact of the US president's tariff threats was evident in the US markets. Wall Street slid on Friday, led by a decline in Meta Platforms, after Donald Trump announced that the U.S. was stepping up sanctions against Canada and other trading partners. Trump said he would impose a 35% tariff on Canadian imports and suggested that many others would receive a blanket 15 to 20% import tariff.
The S&P 500 dropped 0.33% to 6,259.75, and the Nasdaq was down 0.22% at 20,585.53, while the Dow finished 0.63% lower at 44,371.51. Reports of potential new EU antitrust fines saw Meta fall 1.3%.
Nvidia Surges, Drone Stocks Soar
Even with the sharp downturn, shares of Nvidia rose 0.5%, to a market value of $4.02 trillion, its highest ever, boosting confidence in AI-related stocks. Meta Platforms shares dropped by 1.3% after reports said it's unlikely to change its EU data practices, possibly facing new antitrust fines. Defense companies AeroVironment and Kratos Defense surged about 11% each after the U.S.
Defense Secretary said more drone production is needed. Kraft Heinz gained 2.5% on news of a potential breakup of the company, and Levi Strauss surged 11% after boosting its full-year profit outlook.
Looking Ahead to Earnings Season
Volume was light, with 15.4 billion shares changing hands on U.S. exchanges, below the 20-day average of 18.3 billion. The S&P 500 was down 0.3% for the week, while the Dow dropped 1% and the Nasdaq lost 0.1%.
Analysts have expected earnings in the second quarter to rise 5.7% from a year earlier, pulled up by tech but dragged down by energy and consumer sectors. Next week's results from JPMorgan, Netflix, and Johnson & Johnson could show whether Trump's tariffs are cutting into corporate profits.
