U.S. stock futures pulled back on Friday following President Donald Trump’s announcement of increased tariffs on Canadian goods, fueling fears that more trading partners could face higher duties and putting pressure on global commerce. Meanwhile, Nvidia (NASDAQ:NVDA) surpassed a market value of $4 trillion, and Bitcoin hit new record prices.
Trump sets 35% tariff on Canada
Late Thursday, President Trump intensified his trade dispute by declaring that a 35% tariff on all imports from Canada will take effect starting August 1. He also signaled plans to impose broad tariffs ranging from 15% to 20% on many other countries.
Trump communicated the decision in a letter to Canadian Prime Minister Mark Carney, which he shared on social media. The tariff hike would exceed the current 25% rate but would still exempt goods covered by the US-Mexico-Canada Agreement. Energy and fertilizer imports would also maintain existing 10% tariffs.
The president has expanded his trade actions recently, introducing new tariffs on several nations including key allies such as Japan and South Korea, as well as a 50% levy on copper imports.
U.S. futures dip amid trade concerns
Futures for major U.S. indexes retreated Friday from recent highs amid worries that Trump’s tariff moves could hamper economic growth worldwide. At 03:20 ET, S&P 500 futures fell 0.4%, Nasdaq 100 futures dropped 0.2%, and Dow futures declined 0.5%.
Although Thursday saw record closes for the S&P 500 and Nasdaq Composite, markets are cautious heading into the weekend as investors weigh the potential fallout of a full tariff rollout on Canadian products starting August.
Focus has also shifted toward the European Union, with officials hoping to finalize trade agreements before tariffs come into effect.
Nvidia surpasses $4 trillion market cap
On Thursday, Nvidia’s valuation crossed the $4 trillion mark for the first time, underscoring its dominance in the AI chip sector. The stock closed at $4.004 trillion, reflecting an 89% rise since hitting lows in April.
This milestone highlights the soaring demand for AI technology, a key growth driver for Nvidia. CEO Jensen Huang told MSNBC’s Morning Joe, “We’ve reinvented computing like never before, transforming the industry over the past three decades — and especially in the last five years.”
Bitcoin hits new highs
Bitcoin surged past $118,000 on Friday, reaching fresh all-time highs fueled by strong institutional buying and supportive U.S. policies. At 03:20 ET, the cryptocurrency was up 5.6% to $117,670 after peaking at $118,320 earlier in the session.
Investor appetite for bitcoin in treasury portfolios and ETFs continues to grow. U.S. spot bitcoin ETFs reported net inflows of $1.18 billion as of Thursday, marking six consecutive days of gains, with total trading volumes across 12 ETFs hitting $6.3 billion — the highest since late May.
Earlier this year, the Trump administration endorsed a strategic Bitcoin reserve, reinforcing a positive regulatory environment. Further optimism came from a recent Chinese regulatory meeting advising local officials on stablecoins and digital currencies, signaling a possible easing of China’s digital asset stance.
Oil prices rise on Russia sanction speculation
Oil prices climbed Friday amid speculation of tighter sanctions on Russia, although gains were limited by concerns over tariffs and increased output from OPEC+.
At 03:20 ET, Brent crude futures were up 0.4% at $68.94 per barrel, and U.S. West Texas Intermediate rose 0.6% to $66.96.
Both benchmarks had fallen more than 2% on Thursday as investors weighed the impact of new tariffs on the global economy and oil demand. Still, sentiment improved after President Trump voiced frustration over the stalled peace talks between Russia and Ukraine, raising the likelihood of additional sanctions on the world’s third-largest oil producer.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply