Following the recent all-time highs on Wall Street, investors increased profit-taking on Friday, July 11, 2025. The trigger was new uncertainties in the markets, particularly due to the latest tariff announcements from US President Donald Trump.
Background and causes
- Trade dispute and uncertainty: Trump announced tariffs of 35 percent on imports from Canada and additionally plans flat tariffs of 15 to 20 percent on many other trading partners. These measures primarily affect products that do not comply with the regulations of the trade agreement between the US, Mexico, and Canada.
- Fear of escalation: The announcement led to fears among investors that other trading partners could be subjected to similarly high punitive tariffs. Since further threats or demands from the US President are also anticipated – especially over the weekend – the headline risk remains high and risk appetite is correspondingly low.
- Profit-taking after record highs: After the major indices (Dow Jones Industrial Average, S&P 500, Nasdaq Composite) previously reached new record highs, many investors took the opportunity to realize profits in light of the renewed trade uncertainties.
Market reaction
| Index | Change on Friday | Level (approx.) |
|---|---|---|
| Dow Jones | -0.6% to -0.8% | approx. 44,309–44,398 |
| S&P 500 | -0.3% to -0.6% | approx. 6,259 |
| Nasdaq Composite/100 | -0.17% to -0.5% | approx. 22,790 (Nasdaq100) |
The number of losing stocks clearly outweighed the winners: According to preliminary data at the NYSE, there were only about a third as many gainers as the previous day (792 vs. Thursday: 1,857), while the number of losers more than doubled (1,984 vs. Thursday: 909).
Expert opinion
Market experts had already expected profit-taking given the currently high valuation levels; however, Trump’s new broadside against US trading partners has triggered additional fears and further clouded the market climate. Observers point out that while the consequences for Canada may initially be limited to certain products, there is uncertainty about whether Trump is also willing to ignore existing trade agreements or generally raise base tariffs.
Conclusion
The combination of all-time highs in stock indices and new trade policy risks led investors to act more cautiously and realize profits – a typical behavior in uncertain times after strong price increases.