U.S. Stocks May Come Under Pressure Amid Renewed Trade Concerns

(RTTNews) - Stocks may come under pressure in early trading on Friday, giving back ground after moving mostly higher over the two previous sessions. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.6 percent.

The downward momentum on Wall Street comes amid renewed concerns about President Donald Trump's escalating trade battles.

In a letter to Canadian Prime Minister Mark Carney posted on Truth Social, Trump announced a 35 percent tariff on Canadian imports effective August 1st.

Trump said the tariffs were partly due to Canada's failure to stop fentanyl from "pouring" into the U.S. and threatened to raise tariffs further if Canada retaliates.

"If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter," Trump said.

Trump also told NBC News' "Meet the Press" moderator Kristen Welker he plans to impose blanket tariffs of 15 or 20 percent on most U.S. trade partners,

The president also indicated he soon plans to send letters to member of the European Union notifying them of new tariff rates.

Overall trading activity may be somewhat subdued, however, as a lack of major U.S. economic data may keep some traders on the sidelines.

Traders are also looking ahead to the start of earnings season, with a number of big name companies due to report their quarterly results next week.

"The corporate reporting season begins in earnest next week with the big US banks. That will shift the focus to profits and outlook statements, giving valuable insight into how the business world is coping with a multitude of pressures," said Dan Coatsworth, investment analyst at AJ Bell.

He added, "Any corporate optimism is likely to prompt a tickertape parade on the markets as investors look for confirmation that tariff uncertainty hasn't caused widespread damage to earnings."

Stocks moved mostly higher during trading on Thursday, adding to the strong gains posted during Wednesday's session. With the upward move, the Nasdaq and the S&P 500 reached new record closing highs.

The major averages pulled back off their highs going into the end of the day but still closed in positive territory. The Dow climbed 192.34 points or 0.4 percent to 44,650.64, the Nasdaq inched up 19.33 points or 0.1 percent to 20,630.66 and the S&P 500 rose 17.20 points or 0.3 percent to 6,280.46.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Friday. Japan's Nikkei 225 Index dipped by 0.2 percent, while Hong Kong's Hang Seng Index increased by 0.5 percent.

Meanwhile, the major European markets have all moved to the downside on the day. While the U.K.'s FTSE 100 Index is down by 0.6 percent, the German DAX Index and the French CAC 40 Index are both down by 1.0 percent.

In commodities trading, crude oil futures are climbing $0.71 to $67.28 a barrel after plunging $1.81 to $66.57 barrel on Thursday. Meanwhile, after inching up $4.70 to $3,325.70 an ounce in the previous session, gold futures are jumping $32.50 to $3,358.20 an ounce.

On the currency front, the U.S. dollar is trading at 146.88 yen versus the 146.26 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1694 compared to yesterday's $1.1701.