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.

Market Snapshot

At 8:29 a.m. ET, Dow Jones Industrial Average futures shed 260 points, or 0.6%. Futures tied to S&P 500 declined 0.5% after the benchmark posted an all-time intraday high and record close on Thursday. Nasdaq 100 futures slid 0.4%.

Pre-Market Movers

Levi Strauss & Co — The denim apparel stock rose 8% 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.

Crypto Stocks — Shares of Coinbase Global, Inc. rose 1%, Strategy added 3%, SharpLink Gaming rose 9%; Bit Origin rose 43%, 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.

AMC Entertainment — The movie theater chain popped 8% in premarket trading after Wedbush upgraded the 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.

Performance Food — Shares rallied 7% after Bloomberg News reported, citing people familiar with the matter, that U.S. Foods is considering a takeover of the food distributor.

AeroVironment, Kratos Defense & Security — Shares of AeroVironment and Kratos gained more than 3% each after Defense Secretary Pete Hegseth ordered the Pentagon to fast track drone production.

Market News

Trump Slaps 35% Levy on Canada, Warns Further Hikes If Ottawa Retaliates

U.S. President Donald Trump announced a 35% tariff on Canada and warned about further hikes if Ottawa decides to retaliate. These tariffs were addressed in a letter to Canadian Prime Minister Mark Carney and shared on Truth Social. The measure will take effect on August 1, according to a letter posted on Thursday.

The 35% duty is a setback for Carney, who was trying to reach a trade agreement with Washington, and it is more than the 25% levy that Trump had previously imposed on Canada.

"Instead of working with the United States, Canada retaliated with its own Tariffs," Trump wrote in a letter. "There will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States," he added.

Tesla Applies to Test Robotaxis in Phoenix, Arizona - Report

Tesla Motors has reportedly applied to test and operate its Robotaxi service in Phoenix, Arizona, with the state's transportation department expected to decide on the matter by the end of July.

The company "expressed interest in operating within the Phoenix Metro area," the Arizona Department of Transportation told Reuters, adding that Tesla applied to test and operate both with and without a driver.

RealSense Spins Out from Intel, Secures $50 Million to Drive AI Vision in Robotics

Computer vision technology firm RealSense said on Friday it has completed its spinout from Intel and secured $50 million in early-stage funding to accelerate expansion into the rapidly growing robotics sector.

The company develops cameras that enable machines and devices to perceive the world in three dimensions, allowing them to "see" depth, interpret their surroundings, and interact with their environment.