MARKET SNAPSHOT

U.S. stocks fell amid President Trump's latest tariff threats. Traders sold Treasury securities, sending yields higher, as the tariff threats clouded the outlook for inflation and interest rates. Oil futures rose and ended higher for a second straight week. Gold rose as proposed tariffs added to an appetite for safe-haven investments. The U.S. dollar strengthened.

MARKET WRAPS

EQUITIES

President Trump's latest tariff threats knocked stocks off their record levels.

The Dow Jones Industrial Average fell 0.6%. The S&P 500 dropped 0.3%, and the Nasdaq Composite slipped 0.2%.

Late Thursday, Trump said the U.S. would put a 35% levy on Canadian imports, up from the current 25% rate. An exemption for goods that comply with the U.S.-Mexico-Canada Agreement will apply for now, a White House official said.

Canada's Prime Minister Mark Carney said his country would work with the U.S. to clinch a trade deal by Aug. 1, when the higher rate is due to take effect.

Earlier Friday, China's benchmark Shanghai Composite Index ended flat. The Shenzhen Composite Index rose 0.5%, and the ChiNext Price Index increased 0.8%.

Hong Kong's Hang Seng Index rose 0.5%.

Japan's Nikkei Stock Average fell 0.2%.

Stocks in Australia slipped, as the S&P/ASX 200 declined 0.1%.

In New Zealand, the S&P/NZX 50 dropped 0.6%, the third consecutive session of decreases.

COMMODITIES

Oil futures ended higher for a second straight week as the market shrugged off higher OPEC+ production plans, a second large weekly build in U.S. crude oil stocks and the return of U.S. tariff wars to traders' radars.

Back-and-forth about sanctions on Russia, and Russia saying it will compensate for overproducing helped prices, and Middle East geopolitical tensions are still an issue, said John Kilduff of Again Capital.

"We're not at a super high price. We're watching that $70 a barrel level that's going to be the key resistance. I doubt we'll take it out," he said. "There have been some bullish elements, and if nothing else some over-enthusiasm about the downside outlook."

WTI settled up 2.8% at $68.45 a barrel, up 2.2% on the week, and Brent rose 2.5% to $70.36 for a 3% weekly increase.

The narrative around proposed tariffs added to the appetite for safe haven investments. Also adding to the push into gold was the unfolding drama around the President's efforts to replace Federal Reserve Chair Jerome Powell, said Louis Navellier of Navellier and Associates.

The building tension pushed front-month gold futures up 1.2% to $3,356 a troy ounce. It also turned gold positive for the week, making it the fourth positive week out of the past six, and finishing the week up 0.7%.

TODAY'S TOP HEADLINES

Latest Tariff Threats Could Delay Rate Cuts, Chicago Fed's Goolsbee Says

New tariffs unveiled by President Trump have further muddied the inflation outlook, Chicago Fed President Austan Goolsbee said, making it more difficult for him to support the rate cuts that the president has pressed for.

Over the past few months, after Trump paused the steep bilateral tariffs he proposed in April, anxiety about how tariffs could push up prices calmed substantially. That had put the Federal Reserve on track to ease interest rates again soon, Goolsbee said in an interview Friday.

But the latest round of tariffs-including a 35% levy on some Canadian imports and a 50% tariff on goods from Brazil, set to begin Aug. 1-could spark fresh concerns about inflation, which might force the Fed to maintain its wait-and-see posture until the central bank gets more clarity, Goolsbee said.

ECB's Bar for Another Rate Cut Is High, Schnabel Says

The European Central Bank should refrain from lowering interest rates again after inflation in the 20-nation currency area hit the 2% target in June, rate setter Isabel Schnabel said Friday.

"Our interest rates are also in a good place, and the bar for another rate cut is very high," Schnabel said in an interview with Econostream Media.

The ECB last month reduced its key rate for the eighth time since June 2024, with some policymakers suggesting it is nearing the end of the cutting cycle. Investors expect the central bank to stand pat at its meeting later this month.

Trump Threatens 35% Tariff on Some Canadian Goods

The U.S. will put a 35% tariff on imports from Canada effective Aug. 1, President Trump announced on Thursday evening.

But an exemption for goods that comply with the nations' free-trade agreement, the U.S.-Mexico-Canada Agreement, would still apply, a White House official said, stressing that could change.

Trump previously applied 25% tariffs to non-USMCA goods and the new rate, announced in a letter to Canadian Prime Minister Mark Carney and posted on social media, would mean that number rises to 35%, the official said. The U.S. and Canada had been involved in talks to lower tariffs ahead of a self-imposed July 21 deadline.

Kraft Heinz Is Planning a Breakup

Kraft Heinz is preparing to break itself up, a decade after an infamous merger of two of the biggest names in packaged foods that was orchestrated by Warren Buffett and Brazilian private-equity firm 3G Capital Partners.

The company is planning to spin off a large chunk of its grocery business, including many Kraft products, into a new entity that could be valued at as much as $20 billion on its own, according to people familiar with the matter. That would leave a company housing goods such as sauces and spreads like Heinz's namesake ketchup and Dijon mustard brand Grey Poupon.

The company has given priority to its faster-growing offerings like hot sauces, dressings and condiments, which are more in line with consumer preferences than processed lunch meats and cheeses. It hopes the two separate units would be in total worth more than Kraft Heinz's roughly $31 billion market value.

Nintendo's Use of a Rare-Earth Magnet for the Switch 2 Could Expose It to China's Whims

TOKYO-Nintendo's new Switch 2 videogame machine uses a rare-earth magnet to attach its hand-held controllers to the main console, according to a teardown, highlighting the company's vulnerability to potential Chinese supply-chain disruptions.

Nintendo's Switch 2, which starts at $450 in the U.S., has had a strong debut, with global sales surpassing 3.5 million units in the four days following its introduction in June. Nintendo's stock is up 37% this year.

People familiar with the Switch supply chain said Nintendo has moved some production of the device to Vietnam from China to limit the effect of U.S. tariffs. President Trump recently said he was setting the tariff on Vietnamese goods at 20%, while analysts estimate the average tariff on Chinese goods at around 40% to 50%.

Expected Major Events for Monday

00:00/SIN: 2Q Advance GDP Estimates

04:30/JPN: May Revised Industrial Production

04:30/JPN: May Tertiary Industry Index

09:59/CHN: Jun Broad Money M2

09:59/CHN: Jun Trade

09:59/CHN: Jun Commodities Trade Data

09:59/CHN: Jun Energy Trade Data

21:00/NZ: Jun REINZ Monthly Housing Price Index

21:00/NZ: Jun REINZ Residential Market Report

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(END) Dow Jones Newswires

July 13, 2025 16:30 ET (20:30 GMT)

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