Traders work on the floor of the New York Stock Exchange (NYSE) on July 07, 2025, in New York City.
Spencer Platt | Getty Images News | Getty Images
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.
Dow Jones Industrial Average futures shed 285 points, or 0.6%. Futures tied to S&P 500 declined 0.6% after the benchmark posted an all-time intraday high and record close on Thursday. Nasdaq 100 futures slid 0.5%. The Nasdaq Composite also set a new record Thursday.
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.
“I think the tariffs have been very well-received. The stock market hit a new high today,” Trump told NBC News on Thursday.
Traders were also waiting on a trade update from Trump on the European Union this week, but it’s not clear whether the president will post a letter with a new rate like he did with Canada or simply give an update on progress of ongoing deal talks.
The S&P gained 0.3% on Thursday to notch a new record, while the tech-focused Nasdaq finished higher by 0.1% as investors shrugged off any worries around the latest trade developments, including a 50% U.S. tariff on imported copper as well as a 50% tariff on Brazil unveiled this week. A jump in Nvidia on the back of AI hopes to a $4 trillion market valuation has helped drive the recent market gains.
Nvidia was pulling back in premarket trading Friday, along with most other tech shares. It was a broad sell-off 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 premarket trading.
The economy needs to continue to stay resilient for the rally to be sustainable, warned Drew Pettit, Citi’s U.S. equity strategy director.
“Structurally, we’re not there yet. Fundamentally, I don’t think we’re there yet,” he told CNBC’s “Closing Bell Overtime” Thursday. “If you want these types of sectors to continue to outperform more than just a tactical trade, you’re going to need the macro data to hold in there and the Fed to cut rates. It’s not an either or, structurally, I think it’s both and we’re not quite there.”
Friday’s losses will likely push the major averages into the red for the week. Next week, investors will need to navigate the start of second-quarter earnings reporting season, along with the release of some key inflation data.
Citi upgrades shares of TE Connectivity to buy, cites auto trend stabilization
A number of catalysts, including stabilization in the auto market, could position TE Connectivity for more growth ahead, Citi said on Friday.
Shares of TE Connectivity jumped nearly 2% in the premarket after analyst Asiya Merchant upgraded the stock to buy from neutral and increased her price target on the name to $200 from $150, implying more than 14% upside from Thursday’s close.
Merchant said that “stabilization trends in automotive market production” could propel shares of TE Connectivity higher in the coming months, noting that S&P recently raised its global light vehicle production (LVP) forecasts for 2025 to 2027. She also sees an opportunity for margin expansion as a result of improving industrial end demand.
“We remain broadly positive on the connector market which is expected to show continued momentum in 2025 following mid-single-digit growth in 2024 (positive book-to-bill ratio), underpinned by strength in IT Datacom (improving broader infrastructure demand, growing AI demand amidst rising cloud capex expectations), improved industrial end market demand outlook (present inclination toward factory automation spending, positive ramp in energy & defense spending), and early signs of a stabilized automotive market (driven by growth in Asia offsetting declines in Europe and NA),” the analyst also wrote.
TEL vs. S&P 500, 3-month
The upgrade comes as TE Connectivity has already seen meaningful growth this year, with shares rising more than 22% year to date and almost 37% in the past three months. That’s compared to the S&P 500’s gains of nearly 7% in 2025 and more than 17% over the last three months.
— Sean Conlon
AMC shares pop 7% after Wedbush upgrade
AMC saw shares popping 7% in premarket trading Friday after Wedbush upgraded the movie theater chain’s stock to outperform from neutral.
The Wall Street firm said AMC is poised to benefit from a more consistent release slate over the next several quarters. Wedbush also pointed out the company is completing what could be the last major share issuance for the foreseeable future, putting a significant headwind behind it.
Wedbush also hiked its 12-month price target on AMC to $4 from $3.
— Yun Li
Stocks making premarket moves Friday:
Check out the companies making headlines before the bell.
- Levi Strauss — The denim apparel stock rose 7% after second-quarter results topped expectations. Levi Strauss reported 22 cents in adjusted earnings per share on $1.45 billion of revenue. Analysts surveyed by LSEG were looking for 13 cents per share and $1.37 billion. The company also increased its dividend and raised full-year guidance on several key metrics.
- Coinbase, MicroStrategy — Shares of Coinbase and MicroStrategy added 1% and 3%, respectively, as bitcoin reached a fresh all-time high on Friday. The price of the flagship cryptocurrency flew above $118,000 after bitcoin ETFs saw their biggest day of inflows of the year.
- BP — The energy giant said that second-quarter results from its oil trading division should be strong and that the company expects higher upstream production buoyed by U.S. operations. BP warned, however, that lower oil and gas prices would affect its performance.
For more, read here.
— Pia Singh
Vietnam surprised by Trump’s 20% tariff announcement, Bloomberg reports
President Donald Trump surprised Vietnam with the announcement of a 20% tariff rate last week, and the country’s leaders are still looking for a lower rate, Bloomberg News reported Friday, citing people familiar with the matter.
When Trump announced the 20% level on July 2, he said that the two countries had made a “trade deal.”
Vietnamese officials believed they had secured a lower tariff rate had been pushing for something in the range of 10% to 15%, the Bloomberg report said.
— Jesse Pound
Bitcoin extends record to top $118,000
Bitcoin extended its rally on Friday, topping $118,000 for the first time ever.
BTC 5D chart
This came one day after bitcoin exchange-traded funds logged their biggest day of inflows of 2025, at $1.18 billion.
Week to date, bitcoin is on pace to gain nearly 10%.
— Tanaya Macheel, Lisa Kailai Han
Trump says blanket tariff on most trade partners coming
Trump said Thursday that he plans to implement blanket tariffs of 15% or 20% on most trade partners as he brushed off inflation concerns.
“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump told NBC News’ Kristen Welker in a phone call. “I think the tariffs have been very well-received. The stock market hit a new high today.”
There’s currently a 10% blanket tariffs on most U.S. trade partners.
— Fred Imbert
Trump announces 35% tariff on Canada, stocks fall
Trump overnight announced a 35% tariff on imported goods from Canada, citing fentanyl as a reason for the steep duty.
“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. He also threatened higher tariffs if Canada retaliates.
Canadian Prime Minister Mark Carney replied on X, saying “Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries.”
The iShares MSCI Canada ETF (EWC) dropped 0.7% in the premarket Friday.
— Fred Imbert
Stocks making the biggest moves after hours
These are the stocks making the biggest moves in extended trading:
- Levi Strauss — Shares of the denim maker popped about 6% after the company raised its sales guidance, saying it expects it will absorb some tariff costs for now. It also beat earnings and revenue expectations for the most recent quarter, reporting it earned 22 cents per share adjusted versus 13 cents expected. Revenue of $1.45 billion, topped the $1.37 billion estimate, according to LSEG.
- PriceSmart — The discount retailer rose about 7% after reporting higher than expected earnings and revenue for the latest quarter. Earnings per share came in at $1.14, beating analyst estimates by 2 cents, according to LSEG. Revenue of $1.32 billion narrowly topped estimates of $1.31 billion.
- Bitcoin stocks — Stocks tied to the price of bitcoin rose after hours as the the flagship cryptocurrency continued climbing to new records into the evening. Bitcoin was last higher by 4% at $116,031.95, according to Coin Metrics. Bitcoin miners Mara Holdings and CleanSpark each gained nearly 3%. MicroStrategy added 1.8%.
— Tanaya Macheel