By Alex Financials

U.S. Futures Slide on New Trade Tariff Threats

Summary: U.S. stock futures opened notably lower after President Trump announced a steep 35% tariff on Canadian imports effective August 1, with additional tariffs planned for the EU, copper, pharmaceuticals, and more.

Market reaction:

• S&P 500 futures dropped nearly 1%, Nasdaq followed, while the dollar rallied.

• At Friday’s open, the Dow was down ~279 points (–0.6%), S&P 500 –0.4%, Nasdaq –0.2%.

• Investors are bracing for ripple effects across global trade, inflation, earnings, and consumer prices.

Outlook: Initial responses show markets reacting quickly to trade policy, but eyes are on Q2 earnings releases next week for clearer clarity .

Nasdaq & S&P Hit Record, Led by Nvidia

Despite tariff-driven jitters, Thursday saw the S&P 500 and Nasdaq achieve all-time highs, thanks in part to Nvidia (NVDA) hitting over $4 trillion in market cap.

Other standouts:

• Delta Air Lines ($DAL) jumped ~12% on upbeat profit forecasts. United Airlines ($UAL) +14%, Hertz ($HTZ) +11.8%.

• Bitcoin surged again to a fresh all-time high (~$118,000), boosting crypto-linked equities like MicroStrategy ($MSTR), Marathon Digital ($MARA), Riot Platforms ($RIOT) and Coinbase ($COIN).

Summary: Fears around trade didn’t derail ongoing momentum in tech, crypto, and travel sectors—though Friday’s session suggested caution.

Company Highlights: Levi Strauss, BP & More

• Levi Strauss ($LEVI) surged ~10.9% (or +6.5% premarket) after raising its full-year revenue and profit outlook, signaling strong consumer resilience amid tariff tensions.

• BP warned of lower Q2 fuel prices but forecasted higher output; similar guidance from Shell and Exxon followed OPEC+ supply increases.

• T-Mobile ($TMUS) dipped slightly (~–0.6%) despite winning regulatory clearance for its acquisition of U.S. Cellular.

• Red Cat Holdings jumped ~17.8% after securing a government drone production order.

Global Markets Reflect Trade Turmoil

• UK: FTSE 100 fell ~0.5%, FTSE 250 –0.3%, weighed down by weak GDP data and escalating trade risk.

• India: Sensex dropped ~690 points; Nifty slid ~205 points (≈–0.8%). Pressure from trade concerns, disappointing Q1 earnings (e.g., TCS), rising oil prices, and SEBI actions .

• Europe/Asia: Mixed; Chinese and Hong Kong indices rose on policy hopes, Japan flat.

Macro Implications & What to Watch

1. Inflation & consumer cost risks: Tariffs may raise consumer prices on goods like lumber, metals, energy—worries are growing.

2. Earnings-driven clarity: Next week’s earnings cycle (starting with JPMorgan $JPM) will be crucial in assessing tariff fallout .

3. Crypto & AI momentum: Bitcoin’s strength supports digital asset bets; AI momentum, fueled by Nvidia’s dominance, remains a strategic driver .

4. Global spill‑over: Weak GDP data in Europe, pressure in emerging markets—watch for central bank responses and sovereign bond moves .

Final Take

Markets opened Friday on edge as broad trade tariff threats clashed with solid Q2 momentum in AI, travel, consumer staples, and crypto. Major indices remain at/near all‑time highs, but volatility is rising.

Key themes to monitor this week:

• Tariff developments & trade negotiations

• Q2 earnings (big banks, tech, energy)

• Commodity trends (oil, copper, lumber)

• Central bank policy moves amid global growth slowdown