The Dow slid 279.13 points (0.6%) to 44,371.51, the Nasdaq slipped 45.14 points (0.2%) to 20,585.53 and the S&P 500 fell 20.71 points (0.3%) to 6,259.75.
Former President Trump announced a 35% tariff on Canadian imports, effective August 1st, citing Canada’s failure to curb fentanyl trafficking. He warned of further hikes if Canada retaliates but offered to reconsider if cooperation improves. Trump also revealed plans for blanket tariffs of 15–20% on most U.S. trade partners. Despite these announcements, trading activity remained subdued amid a lack of major U.S. economic data.
Traders are eyeing the upcoming earnings season, with major U.S. banks set to kick things off next week. Analysts say strong corporate outlooks could boost market confidence despite ongoing tariff concerns.
Airline stocks pulled back sharply after soaring in the previous session, dragging the NYSE Arca Airline Index down by 2.7%. Biotech stocks were considerably weak, as reflected by the 1.5% loss posted by the NYSE Arca Biotechnology Index. Networking, housing and pharmaceutical stocks too turned notably weak while gold stocks moved strongly upwards along with the price of the precious metal.
Asia-Pacific stocks turned in a mixed performance. Japan's Nikkei 225 Index dipped by 0.2%, while Hong Kong's Hang Seng Index increased by 0.5%. The major European markets all moved downside while the French CAC 40 Index slumped by 0.9%, the German DAX Index slid by 0.8% and the U.K.'s FTSE 100 Index fell by 0.4%.
In the bond market, treasuries came under pressure after ending the previous session roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 7.7 bps to 4.42%.