Wall St dips after report of Trump eyeing steep tariffs on EU goods

Wall Street's main indexes moved lower on Friday after the Financial Times reported that President Donald Trump was pushing for steep new tariffs - at least 15 per cent to 20 per cent - on all European Union goods.

 

The S&P 500 and the Nasdaq, which had hovered near the flatline, quickly turned lower after the report said the Trump administration was eyeing a reciprocal tariff rate topping 10 per cent, even if a deal with Europe is struck. 

At 12:59 p.m. ET, the Dow Jones Industrial Average fell 250.62 points, or 0.56 per cent, to 44,233.87, the S&P 500 lost 10.64 points, or 0.17 per cent, to 6,286.72 and the Nasdaq Composite lost 26.82 points, or 0.13 per cent, to 20,858.83.

With the August 1 tariff deadline fast approaching, US 

trading partners raced to strike a deal with the White House. 

But investors remained wary as the week ticked by with scant progress on trade talks. 

Industrial giant 3M fell about 5 per cent after the company said the impact of tariffs will mostly be felt in the second half of the year. 

Meanwhile, Netflix dropped 5.3 per cent to an over one-month low despite the success of "Squid Game" helping the company surpass earnings forecasts. The streaming giant also lifted its annual revenue outlook. 

The latest pulse check on consumers came from the University of Michigan's Consumer Sentiment Index that rose to 61.8 this month. 

But for Wall Street, it's been a heavy week. Both the S&P 500 and the Dow are on track for only modest gains as investors waded through a maze of mixed signals - robust retail sales, a rise in consumer inflation, and flat producer prices for June. 

Jitters spiked midweek after reports surfaced of a possible ouster of Fed Chair Jerome Powell - reports quickly denied by President Donald Trump. Still, with the president's criticism of Powell's reluctance to cut rates growing louder, Fed Governor Chris Waller signaled he'd be willing to take the job if asked. 

"The week has been heavy in noise, and everybody is worried about tariffs and then you throw in the summer, there's no real catalyst," said Max Wasserman, senior portfolio manager at Miramar Capital. 

"As long as earnings and employment are okay, there's no reason people to get out of this market." Against this backdrop, traders now put the odds of a September Fed rate cut at 58 per cent, with a July move nearly off the table, according to CME's FedWatch tool. 

Six of 11 S&P sectors were trading in the red, with losses led by energy that fell 0.9 per cent. 

American Express outpaced second-quarter profit estimates, buoyed by strong spending from its affluent cardholders. However, its shares were down 2.9 per cent. 

As the second-quarter earnings season gets underway, early results from 59 S&P 500 companies that reported showed more than 81.4 per cent have topped Wall Street's earnings expectations, according to LSEG I/B/E/S data. 

Cryptocurrency stocks rose after the US House of Representatives passed a bill that would develop a regulatory framework for cryptocurrencies. 

Robinhood Markets and Coinbase Global 

gained 2.6 per cent and 1.1 per cent, respectively. 

Chevron closed its $55 billion acquisition of Hess after winning a landmark legal battle against larger rival Exxon Mobil. Hess jumped 7.7 per cent. 

Declining issues outnumbered advancers by a 1.27-to-1 ratio on the NYSE and by a 1.41-1 on the Nasdaq.

The S&P 500 posted 38 new 52-week highs and four new lows, while the Nasdaq Composite recorded 94 new highs and 37 new lows.