NEW YORK, July 11 (Xinhua) -- U.S. stocks ended lower on Friday, pulling back from record highs set a day earlier, after U.S. President Donald Trump announced a new 35 percent tariff on goods imported from Canada and warned of even broader tariff hikes.
The Dow Jones Industrial Average fell by 279.13 points, or 0.63 percent, to 44,371.51. The S&P 500 sank 20.71 points, or 0.33 percent, to 6,259.75. The Nasdaq Composite Index shed 45.14 points, or 0.22 percent, to 20,585.53.
Nine of the 11 primary S&P 500 sectors ended in red, with financials and health leading the laggards by losing 1.00 percent and 0.88 percent, respectively. Energy and consumer discretionary led the gainers by going up 0.48 percent and 0.33 percent, respectively.
Trump justified the higher duties on Canada by citing fentanyl concerns and warned the tariffs could go even higher if Canada retaliates. In an interview with NBC News, the president said he is considering blanket tariffs of 15 percent to 20 percent on all remaining U.S. trading partners, which is significantly above the 10 percent level investors had largely come to expect.
"This has been a week thus far where the rising rhetoric around trade didn't adversely affect markets. Investors were able to look through that to a certain extent, but the order of magnitude with one of our most important trade partners that just got dumped in our laps overnight was an eye opener," said Art Hogan, chief market strategist at B. Riley Wealth Management.
Markets are also watching for further trade developments, particularly with the European Union. While traders anticipate an update from Trump on EU negotiations, it is unclear whether he will impose new tariffs, as he did with Canada, or simply signal progress in ongoing deal talks.
The tech sector, which has helped propel the market to recent highs, was mixed on Friday. Nvidia shares rose 0.5 percent, extending gains after the artificial intelligence chipmaker became the first company ever to close with a market cap above 4 trillion U.S. dollars. Amazon added more than 1 percent as its Prime Day sales event wrapped up, while Tesla and Alphabet also climbed more than 1 percent. Microsoft ticked higher, while Apple and Broadcom edged lower.
Meta Platforms fell 1.34 percent on Friday, one day after reports surfaced that the company had offered a compensation package exceeding 200 million dollars in an attempt to lure away Apple's top executive overseeing artificial intelligence models.
Bond markets reacted to the tariff developments as well, with the yield on the 10-year Treasury note rising to 4.42 percent from 4.35 percent at Thursday's close, reflecting increased uncertainty about inflation and interest rate policy.
Looking ahead, investors will turn their attention to next week's start of the second-quarter earnings season and key inflation data releases, both of which could shape the Federal Reserve's next moves. Enditem
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