After the all-time highs on Wall Street the previous day, investors reacted on Friday with profit-taking as they grew concerned about the recent developments in the tariff dispute. These concerns were heightened by announcements from U.S. President Donald Trump, who imposed a 35 percent tariff on imports from Canada and wants to raise flat tariffs for other countries to between 15 and 20 percent.
Background of the Profit-Taking
Tariff Announcements
The announcement by U.S. President Donald Trump to increase tariffs on imports from Canada by 35 percent has raised concerns among investors that other trading partners could be treated similarly. This has led to increased uncertainty.
Trade Talks
Trump had already terminated trade talks with Canada at the end of June, further escalating tensions.
Market Developments
The recent tariff announcements have cooled risk appetite on Wall Street. Investors have become cautious as they must brace for further threats and demands from the U.S. president.
Market Impact
- Dow Jones: The Dow Jones index fell by 0.6 percent to 44,372 points.
- S&P 500: The S&P 500 declined by 0.52 percent, closing at 6,248.07 points.
- Nasdaq Composite: The Nasdaq Composite fell by 0.2 percent.
- Nasdaq 100: The technology-heavy Nasdaq 100 lost 0.29 percent and closed at 22,762.40 points.
Market Environment
At the NYSE, there were 792 gainers while 1,984 stocks lost value. 42 stocks closed unchanged. These figures reflect the general mood of investors, who are holding back due to trading uncertainties.
Outlook
The new tariff concerns are weighing on the markets and leading to a pullback after the recent records. Investors continue to expect a volatile development as headline risk remains high and risk appetite is correspondingly low.