This drop signals a shift in sentiment and puts major indexes on track for their first weekly loss in nearly a month. The pressure is largely attributed to President Donald Trump’s renewed trade threats against Canada, which have raised fears of economic retaliation and slowed investor momentum.
How are the major indices performing today?
As of the latest trade:
- S&P 500 ETF (SPY): Down 0.34% at $623.72
- Dow Jones ETF (DIA): Down 0.58% at $443.89
- Nasdaq ETF (QQQ): Slightly lower by 0.11% at $554.83
All three indices had briefly touched or approached record highs before sliding into the red by afternoon trading.
What triggered today’s market reversal?
The market’s mood shifted dramatically after President Trump announced a 35% tariff on Canadian goods starting August 1. The move came without warning and rattled traders already wary of escalating trade battles.Investors had been focusing on upcoming earnings season, which officially kicks off next week. But the sudden policy shift redirected attention back to geopolitical and trade risks, sparking volatility across sectors.
Which stocks are outperforming today?
Despite the broader pullback, several names are shining:
- Nvidia (NVDA): +1–2% | Market cap now at a record $4 trillion
- Amazon (AMZN): +0.8% | Continues bullish trend ahead of Prime Day
- Palantir (PLTR): +1% | Holding strong above technical support
- MicroStrategy & Marathon Digital: +3–4% | Riding Bitcoin’s rally past $118K
- Levi Strauss (LEVI): +9.7% | Surged on strong earnings and raised guidance
- AMC Entertainment: +9.5% | Lifted by Wedbush analyst upgrade
Who are the top losers dragging the market down?
A handful of key names took heavy hits today:
| Stock | % Drop |
| Freeport-McMoRan | –2.3% (tariff exposure) |
| United Airlines | –4.4% |
| Delta Airlines | –2.7% |
| Nike (NKE) | –1.81% |
| Intel (INTC) | –1.72% |
| Visa (V) | –1.48% |
| CoreWeave | –4% (continues post-IPO sell-off) |
Why did US stocks fall after hitting record highs?
The decline across US indexes comes just one day after the S&P 500 and Nasdaq reached fresh records. But renewed trade tensions — especially Trump’s aggressive stance toward Canada on tariffs — introduced fresh uncertainty. Investors were quick to shift gears, pushing stock prices lower as caution took over optimism.
The S&P 500 was down 0.4% and headed for a weekly loss after a three-week winning streak. The Dow Jones, down 257 points early Friday, has now fallen for several sessions, and the Nasdaq, though slightly down by 0.2%, is also trending lower for the week.
Bond Yields & Treasury Impact
- The 10-year Treasury yield climbed from 4.34% to around 4.40%, signaling increased caution in the bond market and reducing appetite for risk in equities.
Higher bond yields typically pressure growth stocks, especially in the technology sector, as investors shift to safer assets.
What role did Trump’s tariff threat play in the market drop?
President Trump’s statement signaling a possible new wave of tariffs on Canadian goods sent ripples through the markets. While details remain limited, the threat alone was enough to rattle sentiment, especially after a period of relative calm. Trade disputes often impact sectors such as manufacturing, agriculture, and energy — all of which play a significant role in the US stock market. The tension also stoked worries about retaliatory measures from Canada, adding another layer of uncertainty for investors already navigating interest rate risks and inflation pressures.
How are Treasury yields reacting to the market moves?
Amid the equity market pullback, bond yields were mostly higher, suggesting some investors are rotating into fixed income while keeping inflation expectations in mind. The yield on the 10-year Treasury note rose to 4.40%, up from 4.34% late Thursday. That increase reflects stronger demand for bonds and a cautious eye toward the Federal Reserve’s next move.
Higher yields can also pressure stock valuations, especially in tech and growth sectors, which makes this bond market movement another reason for the day’s equity slump.
Are major indexes heading for a weekly loss?
Yes, if the current trend holds, all three major indexes are set to end the week in the red. This would break a three-week winning streak for the S&P 500, which had been enjoying upward momentum thanks to strong earnings and expectations of steady interest rates.
- S&P 500: Down 0.4% today, negative for the week
- Dow Jones: Down 0.6% or 257 points as of 10:04 a.m. ET
- Nasdaq Composite: Down 0.2%, despite record highs the day before
Investors are becoming more cautious as geopolitical risks come back into the spotlight.
What’s the big picture?
Today’s action shows just how fragile investor confidence remains. After pushing the Nasdaq and S&P 500 to all-time highs this week, markets stumbled on the return of tariff politics.
While tech giants like Nvidia and Amazon remain resilient, traders are now bracing for a volatile earnings season — with trade, inflation, and rate expectations all in play.
What should investors watch next in the US stock market?
Looking ahead, traders and analysts are watching several key areas:
- Any updates or policy shifts from the Trump administration regarding Canadian tariffs
- Economic data releases next week that could influence the Federal Reserve’s interest rate policy
- Earnings season, which is picking up and could help offset some of the nervousness in the market
- Movements in Treasury yields, especially the 10-year, which is closely watched for signs of economic sentiment
With markets now reacting more sensitively to external risks, volatility could rise in the coming sessions.
| Index/Asset | Value/Change |
| S&P 500 | -0.4% |
| Dow Jones Industrial | -257 pts (-0.6%) |
| Nasdaq Composite | -0.2% |
| 10-Year Treasury Yield | 4.40% (up from 4.34%) |
Top Reasons for the Market Decline
- Tariff tensions: President Trump increased tariffs on Canadian imports from 25% to 35%, sparking trade war concerns.
- Investor reaction: The move triggered selling across major indexes amid fears of retaliation and broader global trade disruption.
- Bond yield spike: The 10-year Treasury yield rose to 4.40%, reducing investor appetite for riskier assets like stocks.
The US stock market is showing signs of fragility despite recent highs, as Trump’s trade policy once again takes center stage. Investors should brace for possible volatility and closely follow political and economic developments in the days ahead.
FAQs:
Q1: Why is the US stock market falling after reaching a record high?
Because Trump’s new tariff threat against Canada has shaken investor confidence.
Q2: What impact did bond yields have on US stock performance today?
Rising 10-year Treasury yields added pressure and drove stocks lower.
