The U.S. stock market fell in Friday morning's session. President Trump announced the imposition of a 35% tariff on Canada and threatened to apply a uniform tariff of 15% or 20% to most countries. This heightened risk aversion in the market.
Nvidia, driven by the surge in artificial intelligence, surpassed a market value of $4 trillion, becoming the main driver of the recent rally. On Friday, Nvidia adjusted downwards along with most tech stocks.
Friday's drop could cause the major indices to close the week with losses. Next week, investors will face the double challenge of the start of second-quarter earnings season and the release of key inflation data.
On Thursday, Trump stated that the European Union could receive a letter regarding tariff rates on Friday, generating uncertainty in the outlook for trade negotiations between Washington and the EU. He also announced that starting August 1, a 35% tariff will be imposed on all imports from Canada.