Markets Set to Retreat from Records Amid Tariff Threats

Stock futures dropped Friday, a day after the S&P 500 posted a new record high, after President Donald Trump announced a 35% tariff on Canada and threatened higher tariffs across the board.

Futures for the Dow Jones Industrials dropped 278 points, or 0.6%, to 44,630.

Futures for the S&P 500 index fell 36.75 points, or 0.6%, to 6,287.50.

Futures for the NASDAQ sank 120.75 points, or 0.5%, to 22,892.50.

Trump cited fentanyl as a reason for higher Canada duties, adding that they would go higher if the country retaliates. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump said in a letter posted on Truth Social.

Trump then told NBC News he was planning blanket tariffs of 15% to 20% on remaining countries, higher than the current 10% standard that investors had grown comfortable with.

Nvidia was pulling back in premarket trading Friday, along with most other tech shares. It was a broad selloff Friday with most stocks in the S&P 500 in the red so far in early trading. JPMorgan led banks lower Friday, down about 1% in pre-market trading.

In Japan, the Nikkei 225 index stepped back 0.2% Friday, while in Hong Kong, the Hang Seng moved ahead 0.5%

Oil prices were boosted 77 cents to $67.34 U.S. a barrel.

Gold prices strengthened $32.50 to $3,358.20 U.S. an ounce.